Suppose a Chinese restaurant provides free tea and fortune cookies to its customers. The restaurant is clearly
A) generating a negative externality.
B) generating a positive externality.
C) selling food below cost.
D) attempting to increase its total profit.
E) doing none of the above.
D
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If MPC = 0.9, equilibrium real GDP is $1,000 . and full-employment real GDP is $2,000 . then how much should government spending change to bring about full employment?
a. +1,000. b. ?100. c. +900. d. +100. e. ?0.9.
The peak oil hypothesis says that the annual world production of oil
a. will not peak for several hundred years. b. peaked in the past two decades and is now rapidly declining. c. will peak in the coming decades and then decline. d. is now peaking and a major decline is imminent.
A bank has $100,000 in checkable deposits and $30,000 in reserves. If the required reserve ratio is 10%, what is the amount of required reserves?
A) $0 B) $10,000 C) $20,00 D) $30,000
Which of the following is FALSE about the transition from communism to capitalism in Russia and China?
A) China chose a dual track strategy. B) China's transition strategy was considered gradualist. C) Russia's transition was aided by the large number of workers it had in heavy industry. D) China's transition was aided by the large number of workers it had in rural agriculture.