By issuing checks, debit cards, and credit cards, banks:
a. increase the transaction costs in the economy.
b. decrease the transaction costs in the economy.
c. increase the liquidity of assets in the economy.
d. decrease the liquidity of assets in the economy.
b
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Read Eye on Price Regulation on p. 185 and explain why a mismatch between intention and outcome is inevitable if a price regulation seeks to block the laws of supply and demand
What will be an ideal response?
A perfectly elastic demand curve will:
a. be a vertical straight line. b. be a downward sloping straight line. c. be a horizontal straight line. d. be an upward sloping straight line.
If a perfectly competitive firm sells 50 units of output at a market price of $10 per unit, its marginal revenue is:
A. more than $10. B. less than $10. C. $10. D. $500.
Refer to the information provided in Figure 34.1 below to answer the question(s) that follow.
Figure 34.1Refer to Figure 34.1. If the economy is open and the government increases spending by 15, the new equilibrium output is
A. 81.25. B. 100. C. 112.50. D. 125.