The willingness of consumers to buy a product at different prices is shown on a

A) demand curve.
B) supply curve.
C) production possibilities frontier.
D) marginal cost curve.


Answer: A

Economics

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If the required reserve ratio is 10 percent, currency in circulation is $1,200 billion, checkable deposits are $1,600 billion, and excess reserves total $2,500 billion, then the M1 money multiplier is

A) 2.5. B) 1.7. C) 7.3. D) 0.73.

Economics

In the presence of no externalities,

A) social marginal cost exceeds private marginal cost. B) social marginal cost is less than private marginal cost. C) social marginal cost equals private marginal cost. D) social marginal cost and private marginal cost cannot be compared.

Economics

To determine whether an increase in the price of gasoline results in a consumer spending a larger share of their expenditure on gasoline we need to know

A) only how much money the consumer spends on gasoline before the price change B) only the change in the price of gasoline C) only the change in the price of gasoline as a percentage of the original price D) only the own price elasticity of demand for gasoline E) none of the above

Economics

Lower transaction costs are a benefit of fixed exchange rates. Therefore, relative prices in two trading nations linked by fixed exchange rates should:

A) experience more price divergence. B) experience more price convergence. C) have less arbitrage and more speculation. D) have lower costs of production.

Economics