The small-firm effect refers to the
A) negative returns earned by small firms.
B) returns equal to large firms earned by small firms.
C) abnormally high returns earned by small firms.
D) low returns after adjusting for risk earned by small firms.
C
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Which statement about money is most correct?
A) Money is a new invention and only includes dollar bills and coins. B) Money is a new invention and can include anything that is accepted as a means of payment. C) Money has been around for a long time and can include anything that is accepted as a means of payment. D) Money has been around for a long time and only includes dollar bills and coins. E) Money has been around for a long time and only includes checking and savings accounts.
Hi Phi Sound Unlimited has a monopoly over the installation of surround sound systems. If Hi Phi Unlimited's total revenue from installing 15 sound systems is $30,000 and its total revenue from installing 18 sound systems is $33,000, what is the marginal revenue of the eighteenth sound system?
A. -$3,000 B. $1,000 C. $1,500 D. $3,000
Answer the following statements true (T) or false (F)
1. Demand-pull inflation and cost-push inflation have similar effects on real output in the short run. 2. According to the simple extended AD-AS model, cost-push inflation does not last in the long run if the government leaves the economy alone. 3. According to the simple extended AD-AS model, demand-pull inflation and cost-push inflation have the same effect on output in the long run. 4. When the economy is experiencing cost-push inflation, an inflationary spiral is likely to result when the government adopts a hands-off policy. 5. If the government adopts a "hands-off" policy toward inflation, then the long run effects of cost-push inflation and demand-pull inflation are identical.
When the required reserve ratio is changed,
a. the money multiplier is changed but the amount of excess reserves in the banking system is unchanged. b. the money multiplier is unchanged but the amount of excess reserves in the banking system is changed. c. the size of the money multiplier and the amount of excess reserves change in the opposite direction from the required reserve ratio. d. the size of the money multiplier and the amount of excess reserves change in the same direction as the required reserve ratio. e. neither the money multiplier nor the amount of excess reserves change.