Refer to the information provided in Figure 33.2 below to answer the question(s) that follow.
Figure 33.2Refer to Figure 33.2. The theory of comparative advantage suggests that
A. the United States should export cars and import trucks.
B. England should import trucks and export cars.
C. the United States should export both trucks and cars.
D. England should export both trucks and cars.
Answer: A
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The figure above shows the market for bank reserves in Futureland. If the Bank of Futureland undertakes an open market purchase of government securities that changes the quantity of reserves by $25 billion, then the federal funds rate will
A) fall to 4 percent a year. B) remain at 6 percent a year. C) rise to 8 percent a year. D) change, but more information is needed to determine by how much. E) None of the above answers is correct.
Value is
A) the price we pay for a good. B) the cost of resources used to produce a good. C) objective so that it is determined by market forces, not preferences. D) the marginal benefit we get from consuming another unit of a good or service. E) the difference between the price paid for a good and the marginal cost of producing that unit of the good.
The equation of exchange states that:
a. money supply multiplied by real output equals velocity. b. velocity multiplied by money supply equals the selling price times the quantity of actual output. c. money supply divided by velocity equals nominal GDP. d. money supply divided by velocity equals real GDP.
Which of the following examples illustrates a horizontal merger?
a. an online retailer merges with a shipping company b. a turbine manufacturer merges with a bank c. a paper product manufacturer merges with a timber producer d. a steel producer merges with another steel producer