Specialization occurs because
A. people have different skills.
B. society trades current consumption for future consumption.
C. society produces at the production possibilities curve.
D. the production possibilities curve tends to be linear.
Answer: A
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Which of the following would be most likely to increase consumption spending?
a. A higher interest rate b. A drop in stock prices c. A reduction in consumer credit card debt d. The expectation of lower future prices e. An increase in the income tax rate
Creating policy with the goal of increasing economic growth would be considered:
A. to only help if directed toward poor areas. B. to indirectly hurt efforts to eliminate poverty. C. to indirectly help eliminate poverty. D. None of these is true.
A bank's assets consist of $500,000 in total reserves, $1,600,000 in loans, and a building worth $1,200,000 . Its liabilities and capital consist of $2,000,000 in demand deposits and $1,300,000 in capital. If the required reserve ratio is 25 percent, what is the level of the bank's excess reserves? How much could it loan out as a result?
a. zero; zero b. $500,000; $500,000 c. $500,000; $2,000,000 d. $250,000; $1,000,000
If $1 U.S. is worth $30 Canadian, then a good that sells for $5,000 in the United States should sell for _____ Canadian in Canada
a. $120,000 b. $50,000 c. $150,000 d. $180,000