Which of the following would cause the U.S. money supply to expand?
a. a commercial bank using excess reserves to extend a loan to a customer
b. a commercial bank purchasing U.S. securities from the Fed as an investment
c. an increase in reserve requirements
d. an increase in the discount rate
a
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Refer to Mexico and Japan. Can trade in food and cloth benefit Mexico and Japan?
a. It cannot benefit Japan, because Japan cannot successfully compete with Mexico.
b. It cannot benefit Mexico, because Japan is too small to be an effective trading partner.
c. It can benefit both only if the people in Mexico and Japan have different tastes.
d. It can benefit both if Mexico specializes in food and Japan specializes in cloth.
If a technological change lowers the wage of unskilled workers, it is an example of:
A) a skill-biased technological change. B) an unskilled-biased technological change. C) a preferential-biased technological change. D) a statistical-biased technological changes.
The additional utility or satisfaction that one derives from consuming one more unit of any good or service is referred to as
A. total utility. B. diminishing utility. C. marginal utility. D. average utility.
Which of the following is part of an economic model?
A) assumptions B) norms C) opinions D) preferences of economic agents