If banks demand currency (e.g., Federal Reserve Notes) from the central bank, the effect is to:
a. Increase the nation's monetary base.
b. Decrease the nation's monetary base.
c. Leave the monetary base unchanged.
d. Increase the liabilities of the central bank.
e. None of the above is true.
.C
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Total cost of production refers to the:
A) sum of variable costs and fixed costs. B) product of variable costs and fixed costs. C) difference between variable costs and fixed costs. D) ratio of variable costs to fixed costs.
If an increase in income leads to in an increase in the demand for peanut butter, then peanut butter is
A) a neutral good. B) a necessity. C) a normal good. D) a complement.
Which of the following pair of terms is similar?
A) Overhead and direct cost. B) Direct cost and fixed cost. C) Overhead and fixed cost. D) Overhead and variable cost.
Which of the following is a normative question?
A. What will happen to gasoline consumption if the federal tax on gasoline is eliminated? B. How will oil exploration be affected if the government subsidizes oil producers? C. To reduce the regressive nature of the gasoline excise tax, should the portion of the gasoline excise tax paid by high-income individuals be increased? D. Why do gasoline prices increase between Memorial Day and Labor Day?