Holding other things constant, a decrease in the inflation rate in the US compared to the Canadian economy may cause the demand for dollar to _____________ and the supply for dollar to __________
a. Increase; decrease
b. Increase, increase
c. Decrease; Increase
d. Decrease; Decrease
a
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If a bank receives $2,500 of reserves by selling a government bond to the Fed, its ability to make loans increases by $2,500
a. True b. False Indicate whether the statement is true or false
Which answer best describes how economists suggest we deal with monopolies and oligopolies?
a. We should regulate them all until the markets become competitive. b. We should leave them alone. c. Those firms should be nationalized. d. We should fully enforce all antitrust laws. e. There is no consensus among economists on this issue.
Which of the following is an example of cyclical unemployment?
A. Qadir is employed in the summer as a lifeguard but cannot find a position in the winter B. Quincy left his job in Dallas to search for a new job in Idaho C. Quinlan worked as an engineer until he was laid off because of a decrease in aggregate demand D. Quinn has few job-related skills so she is never hired even though she continues to apply
Allocative inefficiency due to unregulated monopoly is characterized by the condition:
A. P = MR. B. P > MC. C. P > AVC. D. P = MC.