Which of the following summarizes the feedback loop discussed in the video?
A. As the money supply increased, real GDP decreased, which caused the money supply to increase even faster, and so on.
B. As the money supply increased, prices rose, which caused the money supply to increase even faster, and so on.
C. As prices rose faster, the government had to print even more money, which caused prices to rise even faster, and so on.
D. As prices rose faster, real GDP increased, which caused prices to rise even faster, and so on.
Answer: C. As prices rose faster, the government had to print even more money, which caused prices to rise even faster, and so on.
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Making a loan is generally:
A. less risky and less potentially rewarding than buying stock. B. less risky and more potentially rewarding than buying stock. C. more risky and less potentially rewarding than buying stock. D. more risky and more potentially rewarding than buying stock.
As a general rule, you would be unwise to keep a deposit at an FDIC-insured bank in an amount greater than
a. 20 percent of the bank's reserves. b. $1,000,000. c. $250,000. d. an infinite amount; there is no limit.
Davy's Doggie Daycare rents a warehouse and field for $2,000 a month to house its boarding pooches. Farmer Fred owns the property, he used to use it for farming and made $3,000 a month, but has since retired. What is the cost of the warehouse and field to Davy?
A. It is an implicit cost of $3,000. B. It is an explicit cost of $2,000. C. There is both an explicit and implicit cost totaling $5,000. D. It is an implicit cost of $0.
Chris and Tony both produce tomatoes and pasta sauce. The table shows their possible production per month if both work the same number of 8 hour days. If Chris and Tony both decide to specialize and produce only the good in which they have a comparative advantage, then
A. Both Chris and Tony will produce only tomatoes. B. Chris will produce only tomatoes and Tony will produce only sauce. C. Both Chris and Tony will produce only sauce. D. Chris will produce only sauce and Tony will produce only tomatoes