Choose the letter below that best represents the type of shift that would occur in the following situation in the United States: OPEC raises the price of its oil significantly. (See Figure 8.6.)
A. A.
B. B.
C. C.
D. D.
Answer: A
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A consumer's demand for CDs can be represented by a line with slope -b and intercept a. If the current price of CDs is $P, then the ratio of consumer surplus to total expenditures on CDs equals
A) (a - P)(a - bP). B) 1/2(a - P)(a - bP). C) D(a - bP). D) (a - P)/P. E) (a/b - P)/(2P).
Which of the following is not a responsibility of the Federal Reserve?
a. Controlling the money supply b. Printing paper currency c. Supervising banks d. Acting as a bank for banks (e.g., lender of last resort) e. Clearing checks
If a war interrupted oil production, which of the following would most likely happen in the short run?
a. Unit costs would decrease and there would be an upward movement along the aggregate supply curve. b. Unit costs would increase and the aggregate supply curve would shift upward. c. Unit costs would increase and the aggregate supply curve would shift downward. d. Unit costs would decrease and the aggregate supply curve would shift upward. e. Unit costs would increase and there would be movement along the aggregate supply curve.
If two partners have a firm with more debt than assets,
a. the business is a success b. the partners are equally liable for the debt c. there is a limit to their personal liability d. each one's liability is limited to the investment made in the business e. the burden of debt is proportionate to the partners' original investment