Economic discrimination puts the economy inside its production possibilities curve because discrimination:
A. redistributes income from low-paid to high-paid persons.
B. promotes present consumption rather than production of capital goods.
C. arbitrarily blocks women and certain minorities from higher-productivity, higher-wage jobs
and thus keeps the economy from producing its maximum output.
D. often causes inflation, which reduces the nation's real output.
Answer: C
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If the Federal Reserve sets a required reserve ratio of 0.2 and a bank has $100 million in loans and $80 million in deposits, what is the level of required reserves for the bank?
a. $100 million b. $16 million c. $80 million d. $20 million e. $36 million
Critics of advertising sometimes argue that the overall effect of advertising is to make people believe that possessing lots of material goods is the only route to happiness. These critics also believe that this is a misleading view of happiness. Hence, these critics:
A. worry that consumers' choices have positive externalities. B. worry that the resulting increase in consumption increases total utility. C. reject the idea that all is well if the economy produces what people demand. D. believe that distributional issues are the main problem with any economy.
Which set of characteristics below best describes the basic features of monopolistic competition?
A. Easy entry, many firms, and standardized products B. Barriers to entry, few firms, and differentiated products C. Easy entry, many firms, and differentiated products D. Easy entry, few firms, and standardized products
Use the following table to answer the next question.Total ProductTotal Fixed CostTotal Variable Cost0$150$0115050215075315010541501455150200615027071503608150475915062010150800Based on the cost data given, which of the following price-quantity tables correctly represents the firm's short-run supply schedule?(1)(2)(3)(4)PQsPQsPQsPQs$201$200$200$203302300300304453454450455604605600606755756755757956957956958120712081207120915081509150815010
A. Table (1) B. Table (2) C. Table (3) D. Table (4)