Which of the following correctly defines a budget constraint?
a. A model that economists use for illustrating the choices that individuals face in a situation of scarcity
b. A model that shows the level of satisfaction or pleasure that people receive from their choices
c. A model that shows the combinations of output that an economy can produce, given a level of technology
d. A model that represents the allocation that society most desires
a
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For any new deposits into the banking system, the deposit expansion multiplier provides
A) no useful information regarding the potential expansion of the nation's money supply. B) an exact prediction of the expansion of the nation's money supply. C) a theoretical limit on the potential expansion of the nation's money supply. D) an argument that deposits don't effect the nation's money supply at all.
Refer to Table 8-17. What is nominal GDP in 2011?
A) $3,320 B) $3,690 C) $6,360 D) $7,035
Because resources are scarce,
a. opportunity costs are zero b. people must make choices among alternatives c. all human wants and desires can be satisfied d. resource prices are fixed e. commodities are free
In the 1980s and 1990s, Chile adopted capital controls that limited the ability of its citizens to buy or sell assets abroad. This action:
A. limited only capital account convertibility. B. limited both current and capital account convertibility. C. introduced full convertibility. D. limited only current account convertibility.