The reason economists create a market basket is to:
A. see how the cost of buying the goods and services on the list changes over time.
B. get a sense of how people buy items on a weekly basis.
C. know how each individual consumer is being affected by changing prices.
D. track its changing prices to reflect changes in purchasing patterns of firms.
Answer: A
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Which of the following is a reason why some firms do not use commission pay?
A) The best workers stay and less productive workers leave. B) It is difficult to measure the output and attribute output to a particular worker. C) It gives workers incentive to produce more. D) It increases firm profits.
The supply curve for land in New York City is most likely
A) horizontal or perfectly elastic. B) a downward sloping straight line. C) an upward sloping straight line. D) vertical or perfectly inelastic.
Refer to the accompanying table below. According to the Cost-Benefit Principle, how many units of this activity should be carried out?Units of ActivityTotal CostTotal Benefit0$0$01$30$1002$40$1603$60$1904$100$2105$150$2206$210$225
A. 6 B. 1 C. 4 D. 3
In Macroland, currency held by the public is 2,000 econs, bank reserves are 300 econs, and the required reserve/deposit ratio is 10 percent. If the Central Bank raises the required reserve/deposit ratio making the new desired ratio equal to 15 percent, then the money supply in Macroland will ________ to ________ econs, assuming that the public does not wish to change the amount of currency it holds.
A. increase; 4,000 B. decrease; 4,000 C. decrease; 5,000 D. increase; 5,000