Allocative efficiency occurs when
A) we cannot produce more of any good without giving up some other good that we value more highly.
B) we cannot produce more of any one good without giving up some other good.
C) marginal benefit exceeds marginal cost.
D) opportunity costs are decreasing.
A
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A factor that would reduce the ability of the Social Security system to maintain current benefit levels with constant tax rates is
A. rapid real wage growth. B. reduced population growth. C. adoption of a “pay as you go” system. D. a slowdown in inflation.
How much is a bond that pays $40 in coupon payments for 2 years and $1,000 at the end of the fourth year worth if the interest rate is 4%?
A) $844.56 B) $924.56 C) $1,000 D) $1,123.2
"Our knowledge of the factors which govern the yield of an investment some years hence is usually very slight and often negligible." This quote by ________ helps to explain ________
A) Jorgenson; cycles of overbuilding B) Keynes; cycles of overbuilding C) Jorgenson; the accelerator hypothesis D) Keynes; the accelerator hypothesis
A bank has $100 million of checkable deposits, $6 million of required reserves, and $2 million of excess reserves. What is the required reserve ratio?
a. 2 percent. b. 3 percent. c. 6 percent. d. 12 percent.