Refer to the graph shown. The marginal rate of substitution at point C is:
A. 1.
B. 1.5.
C. 2/3.
D. impossible to determine with the information given.
Answer: C
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Indicate whether the statement is true or false
Which of the following best describes the Employment Act of 1946?
(a) A piece of New Deal legislation that had to be postponed until after the war (b) An effort to stabilize the U.S. balance of payments as the world moved toward using the U.S. dollar as the main reserve currency (c) An attempt to reduce the overall extent of federal responsibility in the post-war national economy (d) All of the above
When economists say the quantity demanded of a product has increased, they mean the:
a. demand curve has shifted to the left. b. demand curve has shifted to the right. c. price of the product has fallen, and consequently, consumers are buying more of it. d. price of the product has risen, and consequently, consumers are buying less of it.
If the reserve ratio was 100 percent, then:
A. no lending would occur using deposits. B. maximum lending would occur. C. banks would create money in the economy. D. banks would lend all of their deposits.