Bank reserves are:
A. currency, customer checking and savings deposits.
B. any asset used to purchase goods and services.
C. cash and similar assets held to meet depositor withdrawals or payments.
D. currency and customer checking deposits.
Answer: C
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A decrease in the demand for a good generally implies that:
a. consumers are willing to buy larger quantities of the good at each price. b. the demand curve for the good has shifted to the right. c. consumers are willing to pay a higher price for each unit of the good. d. the demand curve for the good has become steeper. e. the demand curve for the good has shifted to the left.
In the analysis of potential GDP, labor and capital are considered
a. inputs. b. final goods and services. c. byproducts of economic growth. d. outputs.
Which of the following is not considered a major player in the financial system?
A. Banks B. Savers C. Labor unions. D. Businesses
Why is voluntary exchange an important source of economic prosperity?
A) All of the above are correct. B) It makes it possible to produce a larger output as a result of gains from division of labor and specialization. C) It makes it possible to produce a larger output as a result of lower per unit costs that often accompany large-scale production. D) It moves goods from people who value them less to people who value them more.