If the income elasticity of a good is greater than zero, we say that the good is a:
A. normal good.
B. inferior good.
C. complementary good.
D. substitute good.
Answer: A
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The Land Ordinance of 1787 provided that a state would be admitted to the Union when its population reached:
a. 5,000. b. 30,000. c. 60,000. d. 100,000.
Suppose the banks in the Federal Reserve System have $100 million in transactions accounts and the reserve requirement is 0.10. Ceteris paribus, if the reserve requirement is decreased to 0.07, then excess reserves will increase by:
A. $3 million. B. $7 million. C. $10 million. D. $700 billion.
Suppose a recent study shows that in Country A, consumers pay an average of about $169,000 per job per year maintained by import protection. Given that these employees earned much less than $169,000 per year, it would be much cheaper to simply pay these workers not to work and impose no import restrictions. Why do you think that, in spite of the fact that there is a net loss in national well-being, the government of Country A has maintained these barriers?
What will be an ideal response?
Which of the following represents a preventative measure against bank runs?
A) The President of the United States can order banks to pay depositors. B) The Federal Reserve can lower reserve requirements to ensure that banks have sufficient funds. C) The FDIC provides deposit insurance. D) None of the above is correct.