Linda Evangelista, a supermodel, once said that she "won't get out of bed for less than $10,000 a day." This fee is an example of
A) a reservation wage.
B) the demand for Linda's labor.
C) a competitive labor market.
D) the substitution effect.
A
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If the Federal Reserve sells $1,000 in bonds and, as a result, the money supply decreases by $2,500, what is the required reserve ratio?
a. 0.4 b. 2.5 c. 0.5 d. 0.1 e. 0.2
Assume that pencils and pens are substitutes. If the price of pencils rises ceteris paribus, then we will see
A. A decrease in the demand for pens. B. A decrease in the supply of pens. C. An increase in the demand for pens. D. An increase in the supply of pens.
In Figure 1.3, A, B, and C, which depicts the existence of constant opportunity cost? 
A. Figure A B. Figure B C. Figure C D. All three figures show the existence of constant opportunity cost.
I) The growth rate of Eduland's money supply in a particular year was 8.5%
What was the growth rate of real GDP if the inflation rate in the same year was 4%? ii) What is likely to happen if the growth rate of money supply doubles in the following year, while the growth rate of real output remains unchanged?