Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.
Figure 6.6Refer to Figure 6.6. Bill's budget constraint is BD. If the price of bell peppers increases, Bill's new budget constraint is
A. CD.
B. EF.
C. AD.
D. AO.
Answer: C
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Which of the following is not a consequence of the Fed changing the reserve requirement?
A) Changes in the ratio are easily incorporated into banks' routine management. B) Changes in the ratio effectively places a tax on banks' deposit taking and lending activities. C) Decreasing the ratio will increase excess reserves. D) Increasing the ratio will decrease the amount of reserves banks have to loan.
Which of the following statements about a firm's demand curve for labor is true?
a. It shows the relationship between the price of output and the quantity of output demanded. b. It usually has a negative slope. c. It is perfectly inelastic. d. It is derived from the labor supply curve. e. It is parallel to the demand curve for the firm's product.
Imperfect information means which of the following?
a. one party to the transaction has more information than the other party b. buyers and sellers have all the information necessary to make an informed decision c. buyers and sellers do not have all the information necessary to make an informed decision d. buyers always have more information than sellers to make an informed decision
According to the law of comparative advantage, a doctor who is also a talented auto mechanic should
a. get a part-time job at a gas station. b. do her own auto repairs and those of her neighbors. c. hire a professional mechanic to repair her car. d. only repair the cars of other doctors.