The Fed buys $25,000 of government securities. The desired reserve ratio is 20 percent and the currency drain ratio is zero. What will be the change in the quantity of money?
A) $5,000
B) $20,000
C) $25,000
D) $125,000
E) $50,000
D
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When the government uses a private subsidy in a market with an external benefit, to reach the efficient quantity of production, the subsidy must be equal to the marginal
A) social benefit. B) cost of production. C) private benefit. D) external benefit. E) external cost.
The natural rate of unemployment equals
A) structural plus frictional plus cyclical unemployment. B) structural plus frictional unemployment. C) the rate of unemployment we observe in any given period of measurement. D) the rate of structural unemployment.
Welfare recipients differ markedly from other Americans with respect to general personality characteristics, work ethics, and basic life goals
Indicate whether the statement is true or false
Itchy Scratchy Bombs 10 8 Missiles 6 4 The table above shows how many bombs or missiles Itchy and Scratchy can produce in one year. (For example, Itchy could produce 10 bombs or 6 missiles in a year.) Which of the following is an accurate statement about comparative advantage?
a. Itchy has the comparative advantage in both goods. b. Scratchy has the comparative advantage in both goods. c. No one has the comparative advantage in missiles. d. Itchy has the comparative advantage in bombs, while Scratchy has the comparative advantage in missiles. Incorrect, Please review Top Ten Concept # 2. e. Itchy has the comparative advantage in missiles, while Scratchy has the comparative advantage in bombs.