In the Keynesian cross diagram, the vertical intercept of the expenditure line equals ________ and the slope of the expenditure line equals ________.
A. autonomous expenditures; induced expenditures
B. autonomous expenditures; the mpc
C. induced expenditures; autonomous expenditures
D. planned spending; unplanned spending
Answer: B
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What is the major advantage of the corporate form of business organization?
A) Its owners have limited liability. B) Its owners have unlimited liability. C) Its profits are not taxed. D) Its profits are taxed twice.
If a monopoly can produce a good at zero marginal cost, then its Lerner Index is
A) zero. B) one. C) infinity. D) undetermined.
Which of the following would not be studied in microeconomics?
A. How individual firms decide how much to produce. B. Whether the federal budget should be balanced. C. How an early freeze in California will affect the price of fruit. D. Whether to study or watch TV tonight.
Actual reserves equal required reserves plus excess reserves.
Answer the following statement true (T) or false (F)