The federal funds rate and the quantity demanded of reserves have a(n) ____________ relationship. This is because as the federal funds rate moves down, it becomes _______________ for banks to hold reserves, encouraging banks to hold ____________ in reserves to guard against checkable deposit withdrawals
A) inverse; more expensive; more
B) direct; more expensive; less
C) inverse; cheaper; more
D) direct; cheaper; more
C
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The reason the production possibilities curve is bowed outward (concave) is
A) the law of increasing additional cost. B) that technology is constantly changing. C) that the number of resources is increasing. D) that the economy has more capital goods than entrepreneurial effort.
In terms of production possibilities curves, the benefits of trade between two nations are that each nation moves to a higher:
a. standard of living. b. consumption possibilities combination. c. both a and b. d. neither a nor b.
Which of the following is a disadvantage of the corporate form of business organization?
A) limited liability B) limited financing C) double taxation D) unlimited liability
A monopolist has four distinct groups of customers. Group A has an elasticity of demand of 0.8, B has an elasticity of demand of 0.9, C has an elasticity of demand of 1.0, and D has an elasticity of demand of 1.2. The group paying the highest price for the product will be
A. A. B. B. C. C. D. D.