If an economy is operating at a point inside the production possibilities curve, then
A) society’s resources are being inefficiently utilized.
B) the curve will move to the left.
C) society’s resources are being used to produce too many consumer goods.
D) economic policy must retard further growth of the economy.
A) society’s resources are being inefficiently utilized.
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Suppose there is a rise in the price level, but no change in the money wage rate. As a result, the quantity of labor demanded
A) increases. B) decreases. C) does not change because there is no change in the real wage rate. D) decreases only if the money wage rate also decreases.
Savings accounts, certificates of deposit, and bonds pay interest and stocks pay dividends. Why does anyone hold on to currency or other forms of money and lose this extra income?
What will be an ideal response?
Vertical contracts between manufacturers and retailers often aim to
a. Incentivize the manufacturers to undertake costly activities, which they otherwise may not realize the full benefits of on their own b. Reward the manufacturers for undertaking the risk inherent in introducing a new product c. Serve as a "signal" of the manufacturer's belief of the likely success of his product d. All of the above
The ratio of actual reserves to total deposits at the Fed and vault cash is called
A. a certificate of deposit. B. the gold reserve. C. fractional reserve banking. D. the fractional reserve ratio.