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
Answer: D
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If the Fed were to lower the required reserve ratio,
A) excess reserves would decrease. B) excess reserves would increase. C) there would be no effect on the level of excess reserves. D) there would tend to be no effect on the nation's money supply.
If an economy is operating at short-run equilibrium below the full-employment level of real GDP, the self-correction model result is that:
A. unemployment increases. B. unemployment falls. C. cyclical unemployment increases. D. frictional and structural unemployment increase.
If the inflation rate in the U.S. is lower than in other countries, this would be expected to
A. increase U.S. exports. B. reduce U.S. imports. C. increase the demand for dollars. D. All of the choices are true.
Assuming everything else stays the same, an increase in the price of laptop computers will __________ of laptop computers.
a) decrease the quantity demanded b) increase the demand c) increase the quantity demanded d) decrease the demand