If the Federal Reserve increases the legal reserve requirement on deposits,
a. the money stock will rise and the money multiplier will fall.
b. the monetary base will rise and the money multiplier will fall.
c. both the monetary base and the money stock will fall.
d. neither the monetary base nor the money stock will rise.
C
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If people stand to produce at lower cost when specializing and producing in larger quantities
a. they cannot gain from trade because each one is just as potentially productive as another. b. they cannot gain from trade because most people's wants can be easily satisfied with what they can produce themselves. c. they cannot gain from trade if they have similar tastes. d. they can gain from trade by specializing and increasing productivity.
Both the principles of rivalry and mutual excludability apply for club goods
a. True b. False Indicate whether the statement is true or false
The fallacy of composition is the fallacious view that
a. economic activity will benefit everyone. b. what is true for the individual will also be true for the group. c. it is possible for the whole to be greater than the sum of the individual parts. d. association does not necessarily indicate causation.
Which of the following can shift the labor demand curve to the right?
A. decrease in product price B. increase in wages C. increase in productivity D. decrease in the marginal product