Assume the central bank decides to lower the bank's reserve requirements. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real goods market with aggregate demand shifting to the left.
b. Start the analysis in the real goods market with aggregate demand shifting to the right.
c. Start the analysis in the real credit market with demand for real credit shifting to the left.
d. Start the analysis in the real credit market with demand for real credit shifting to the right.
e. Start the analysis in the real credit market with supply of real credit shifting to the right.
.E
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Property rights protect
A) only the rights to physical property. B) rights to physical property, financial property, and intellectual property. C) the government's right to impose taxes. D) only the rights to financial property. E) all rights except rights to intellectual property.
The table above shows the demand and costs for a single-price monopolist. When it maximizes its profit, the firm makes an economic profit of
A) $15. B) $25. C) $40. D) $45.
The system of accounts for each country, based on the circular flow, whose purpose is to measure the level of economic activity is called:
A) the underground economy. B) national income accounting. C) bookkeeping. D) none of the above.
When consumers have less information about a product than do sellers, then this is the situation of
A) asymmetric information. B) symmetric information. C) caveat emptor. D) a market failure.