The short run is the time period
A. In which only the amount of capital may be altered.
B. Over which an investment decision can be made.
C. In which some costs are fixed.
D. Necessary so that profits can be earned from production.
Answer: C
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If the required reserve ratio is 5%, what is the value of the simple deposit multiplier?
A) 0.05 B) 0.20 C) 5 D) 20
We can approximate the real return on an investment by subtracting the inflation rate from the nominal return on the investment
For example, an investment that returns 10% per year while inflation is 4% per year has a real (inflation adjusted) return of approximately 6%. Which of the following outcomes is NOT possible? A) Nominal and real returns are positive B) Nominal return is positive, real return is negative C) Nominal return is negative, real return is positive D) all of these outcomes are possible
A law that encourages market competition by prohibiting firms from gaining or exercising excessive market power is
a. a patent. b. impossible to enforce. c. an antitrust law. d. an externality law.
Which of the following is true?
a. The resources used by special-interest groups to persuade elected officials to create legislation to increase their wealth are productive to society because they increase real output. b. The resources used by special-interest groups to persuade elected officials to create legislation to increase their wealth are unproductive to society because they do not increase real output, and usually end up reducing it. c. Special-interest legislation created through rent-seeking activity usually creates widespread benefits for the rest of the society. d. Special-interest legislation confers concentrated benefits on one group by imposing concentrated costs on another group.