Refer to the information provided in Table 8.4 below to answer the question(s) that follow.
Table 8.4ProduceUsing TechniquesUnits of Variable KInputs L1 unit of outputA4 4?B2 6????2 units of outputA 7 6?B410????3 units of outputA 8 6?B 6 11Refer to Table 8.4. Assume that the relevant time period is the short run. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, the average total cost of producing two units of output is
A. $10.
B. $20.
C. $45.
D. $50.
Answer: C
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Assume that the reserve requirement for the commercial banks is 25%. If the Federal Reserve Banks buy $3 billion in government securities, the lending ability of the commercial banking system will increase by ________.
A. $12 billion B. $15 billion C. $9 billion D. $4.5 billion
If Brian, age 24, had no job but was available for work and had looked for a job the week before the survey, Brian is classified in the Current Population Survey as
A) unemployed. B) a discouraged worker. C) not in the labor force. D) employed. E) not in the working-age population.
What is social capital, and how is it connected to economic development?
What will be an ideal response?
Prior to 1980, member banks left the Federal Reserve System due to
A) the high cost of discount loans. B) the high cost of required reserves. C) a desire to avoid interest rate regulations. D) a desire to avoid credit controls.