An assumption that makes an economic model simpler without affecting its conclusions in important ways is
a. an indication of a positive assumption
b. an efficient assumption
c. useful in disguising the valid conclusions
d. a simplifying assumption
e. a critical assumption
D
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The above table gives the initial balance sheet for Mega Bank. Barney comes into the bank and deposits $50 of currency into his checking account. The desired reserve ratio is 3 percent
After Barney's deposit, but before any other actions occur, MegaBank will have excess reserves of A) $15.00. B) $33.00. C) $48.50. D) $50.00.
Suppose new electronic devices make it easier to monitor the effort levels of workers. What happens to the NSC curve in the efficiency wage model?
A) Shifts upward B) Shifts downward C) Remains the same D) The NSC curve remains the same, and the labor supply curve shifts leftward because shirking workers will leave the labor force.
Refer to the accompanying figure. If this economy is currently producing at point C, then the opportunity cost of providing 100 additional units of medical care would be:
A. 400 warheads. B. 100 warheads. C. 800 warheads. D. 200 warheads.
Suppose an economy is initially in long-run equilibrium, and it then experiences a supply shock in the form of exceptionally high energy prices. Which of these will be true in this economy?
What will be an ideal response?