Which of the following is true of economic fluctuations?
a. They can be experienced by the world economy as well as by a single nation
b. They tend to be equal in length and intensity.
c. They reflect an economy's socio-political condition.
d. They tend to become more severe when the government attempts to stabilize an economy.
e. They have been completely offset by appropriate government policies during the last 40 years.
a
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Banks can continue to make loans until their
A) actual reserves equal their excess reserves. B) excess reserves equal their required reserves. C) actual reserves equal their required reserves. D) actual reserves equal their checking account balances.
If the consumption function is given by C = 200 + 0.6YD, then an increase in taxes of 50 units will cause the IS schedule to
a. shift to the right by 75 units.. b. shift to the left by 50 units. c. shift to the left by 75 units. d. shift to the left by 125.
How do the deadweight losses of a tariff differ when the domestic industry is perfectly competitive from when it is a monopoly?
a. They are the same. b. Deadweight losses are larger for a perfectly competitive industry than for a monopoly. c. Deadweight losses are larger for a monopoly than for a perfectly competitive industry. d. It is not possible to compare deadweight losses of a monopoly with those of a perfectly competitive industry.
A firm suffers losses if
A. total revenue is greater than the total variable cost of production but less than total costs. B. price exceeds average variable cost but is less than average total cost. C. price exceeds marginal cost. D. total revenue is greater than the total fixed cost of production.