The money multiplier is
A) Assures that excess reserves will be driven to zero.
B) The number of times GDP can be increased by expansion of the money supply.
C) Is equal to the fractional reserve requirement ratio times total reserves.
D) None of the above.
Answer: D
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When a perfectly competitive industry is taken over by a monopoly, some consumer surplus is transferred to the monopolist in the form of
A) marginal cost. B) economic profit. C) deadweight loss. D) taxes. E) average variable cost.
A firm's opportunity cost of using resources provided by the firm's owners is called
a. sunk costs b. fixed costs c. explicit costs d. implicit costs e. entrepreneurial costs
Which of the following does not help reduce frictional unemployment?
a. government-run employment agencies b. public training programs c. unemployment insurance d. All of the above help reduce frictional unemployment.
Camille is at the candy store with her grandmother, who offers to buy her $6 worth of candy. If lollipops are $1 each and candy bars are $2 each, what combination of candy can Camille's grandmother buy for her?
A. Six lollipops and three candy bars. B. Two lollipops and two candy bars. C. Three lollipops and two candy bars. D. One lollipop and three candy bars.