Derivatives
A. can be used to reduce risk.
B. can be a source of risk.
C. made the financial crisis of 2007–2009 worse than it otherwise would have been.
D. All of these responses are correct.
Answer: D
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An economy has two workers, Paula and Ricardo. Everyday they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the opportunity cost for Ricardo to produce one shirt?
A. ¼ computer B. 4 computers C. 2 computers D. ½ computer
When the price level falls,
A) there is a movement upward along the AS curve. B) both the potential GDP line and the AS curve shift leftward. C) the AS curve shifts leftward but the potential GDP line does not shift. D) the AS curve shifts rightward but the potential GDP line does not shift. E) there is a movement downward along the AS curve.
Human resources that perform the functions of organizing, managing, and assembling the other resources are called
A) physical capital. B) venture capital. C) entrepreneurship. D) productive capital.
Required reserves are
A. equal to total reserves minus excess reserves. B. equal to total reserves minus checkable deposits. C. always less than total reserves. D. determined by multiplying the level of checkable deposits times the discount rate.