Suppose that when NBC produces 1 new drama series in a season it gives up the chance to produce 3 new reality shows. This means that
A) the opportunity cost of a new drama series is 1/3 of a new reality show.
B) the opportunity cost of a 1 new reality show is 1/3 of a new drama series.
C) NBC has a comparative advantage in producing new drama series.
D) NBC has a comparative advantage in producing new reality shows.
B
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In the simple deposit expansion model, if the Fed extends a $100 discount loan to a bank that previously had no excess reserves, deposits in the banking system can potentially increase by
A) $10. B) $100. C) $100 times the reciprocal of the required reserve ratio. D) $100 times the required reserve ratio.
There is a negative relationship between the price level and which components of GDP?
A. C, I, and G B. I, G, and NX C. C, G, and NX D. C, I, and NX
Which of the following is NOT an example of moral hazard?
A. People take poor care of their health because they have health insurance. B. People drive recklessly because they have medical insurance. C. People don't lock their doors because they have theft insurance. D. All of these are examples of moral hazard.
Which of the following statements is incorrect?
A. The point where the short-run and long-run supply curves intersect corresponds to the potential level of output. B. Inflation and output are unrelated in the long run. C. Any point on the short-run aggregate supply curve reflects current inflation equals target inflation. D. In the long run, inflation is determined by monetary policy.