A government can finance its budget deficit by doing all of the following except:
A. selling bonds.
B. buying bonds.
C. borrowing from its central bank.
D. printing money.
Answer: B
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There will be no deadweight loss if the marginal benefit to consumers is equal to the marginal cost of production and the sum of consumer surplus and producer surplus is maximized
Indicate whether the statement is true or false
Which of the following is a partially valid economic argument for restricting free trade?
a. Restrictions on foreign trade will increase employment and permanently reduce unemployment. b. Infant industries may need temporary protection to develop and gain productive efficiency. c. A nation needs to protect its national defense; hence, it should restrict some products that threaten an industry considered vital to its defense. d. Both b and c are correct.
Grapevine Bank receives a deposit of $200,000. Its required reserve ratio is 12 percent. How much of this deposit is available to be loaned to borrowers?
a. $12,000 b. $176,000 c. $200,000 d. $24,000
Refer to the information provided in Table 30.1 below to answer the question(s) that follow.
Table 30.1
Refer to Table 30.1. What is the real wage rate in 2014 using 2016 as the base year?
A. $6.00 B. $6.84 C. $11.40 D. $13.30