A cost associated with an economic depression is
a. the loss of goods and services that are not produced.
b. the loss of individual income to unemployed workers.
c. a possible deterioration of working skills of unemployed workers.
d. All of these.
d. All of these.
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Refer to the above table. The table represents information on the costs for Ajax Corporation. Ajax operates in a perfectly competitive market and the price of the product is $7. What will be the value of total revenue when quantity sold equals 2?
A) $7 B) $14 C) $21 D) $16
Which of the following would lead to a decrease in the money supply?
a. Banks decide to use excess reserves to purchase corporate bonds. b. The Fed decreases the discount rate. c. The Fed decreases the required reserve ratio. d. The Fed sells government bonds. e. The Fed purchases government bonds.
What happens to a resource as it becomes scarcer?
a. The price rises and this increases the future supply relative to demand. b. The price rises and this increases the future demand relative to supply. c. The price falls and this increases the future supply relative to demand. d. The price falls and this increases the future demand relative to supply.
The IMF offers loans to developing countries in times of balance of payment constraints, but the IMF also faces strong criticisms because:
A. contractionary fiscal policy and expansionary monetary policy tend to be ineffective against balance of payment constraints. B. contractionary fiscal and monetary policies are always undesirable for any developing country. C. it employs economists that know little about developing countries and their economic affairs. D. the conditions tend to be procyclical, therefore worsening the recessions.