Which one of the following statements is true?
A. Money flows from households to firms for resources.
B. Money flows from households to foreign economies for exports.
C. Money flows from government to firms for resources.
D. Money flows from firms to households for resources.
Answer: D
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When a quota on a product is removed, this policy action
A. benefits consumers of the product. B. hurts nations exporting the product. C. benefits the government. D. benefits domestic producers of the product.
Which of the following is an example of opportunity cost?
A. The income that could have been earned by working full-time instead of going to college. B. The decline in the grades of a student athlete that occurs because she decides to spend more time practicing sports than on her academic work. C. The value of other things you could have done with the same time and money it cost you to go to the movies. D. All of the choices are examples of opportunity cost.
The greater the legal reserve ratio, the:
A. lower the spending multiplier. B. higher the money multiplier. C. higher the spending multiplier. D. lower the money multiplier.
Suppose that last year the Tulane University men's basketball team, the Green Wave, won the NCAA tournament. As a result, attendance at Green Wave basketball games has increased dramatically. Explain the difference between the supply of seats for Green Wave games in the short-run and in the long-run. How would you describe the elasticity of supply of seats in the long-run?
What will be an ideal response?