When the required reserve ratio is 15% and a banks deposits are $100 million, the bank is required to put $1 million into required reserves
a. true
b. false
Ans: b. false
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A ________ externality occurs when a market transaction affects others through market prices
A) positive B) negative production C) negative consumption D) pecuniary
The bowed outward shape of the production possibilities frontier in the above figure indicates that
A) some resources are better suited for producing computers. B) the opportunity cost of producing more computers decreases as more computers are produced. C) computer technology is subject to the principle of decreasing costs. D) All of the above answers are correct.
Which one of the following factors will most likely cause an increase in aggregate demand?
a. An increase in net exports. b. An increase in the real interest rate. c. A decrease in net exports due to falling incomes abroad. d. A technological development that decreases the cost of producing computer chips.
Which of the following is often referred to as the basic postulate of economics?
A) Incentives matter—individuals respond in predictable ways to changes in personal costs and benefits. B) Individuals act only out of selfish motives. C) The accuracy of the assumptions is the best test of an economic theory. D) The value of a good is objective; it is equal to the cost of producing the good.