If the Federal Reserve sells $200 of securities through a commercial bank when the reserve requirement is 10 percent, the maximum potential change in the money supply is
A. a $200 decrease.
B. a $2,000 increase.
C. a $2,000 decrease.
D. a $200 increase.
Answer: C
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Studies indicate that a lack of skill transferability in the U.S. has a particularly large effect on the earnings of:
A. Domestic workers with low levels of human capital B. First-generation immigrants C. Immigrants who lack English-language skills D. Highly-educated domestic workers
The figure above shows the market for a good with an external benefit. When 6 units are produced, marginal social benefit equals ________ and marginal external benefit equals ________
A) $200; $150 B) $350; $200 C) $200; $50 D) $350; $150 E) $150; $250
The purpose of social insurance is to
a. encourage charitable donations b. provide money to the poor c. provide in-kind aid to the poor d. redistribute income for the old to the young e. supplement the incomes of those who have worked but are now retired, temporarily unemployed, or disabled
Jaime’s cross price elasticity of science fiction and mystery novels is -4. This means that the novels are
a. compliments. b. normal. c. substitutes. d. inferior.