Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 cash deposit, then, excluding the $1,000 initial deposit, the banking system can increase the money supply by:
A. $900.
B. $910.
C. $1,000.
D. $9,000.
Answer: D
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Barbara buys the same market basket each week and spends $60 on it. This week Barbara brought $60 to the store but could not buy her usual market basket. One explanation for this is ________.
A. she became unemployed B. there was an increase in real GDP C. the GDP price index has decreased D. there was inflation
Jobs lost to outsourcing can be partially offset by jobs gained from
A) increased output from another industry. B) greater trade imbalances. C) higher opportunity costs. D) higher production costs.
(a) Fill in Table. (b) Is the firm a perfect or an imperfect competitor? Explain. (c) If the wage rate were $220, how many workers would be hired? How much would the total wage bill come to? (d) If the wage rate were $100, how many workers would be hired? How much would the total wage bill come to? (e) How many workers would be hired if the wage rate were $50? (f) How many workers would the firm want to hire if the wage rate were $0?
Refer to the data provided in Table 11.4 below to answer the following question(s).
Table 11.4 
Refer to Table 11.4. When the interest rate ________, the farmer will engage in no investment.
A. is greater than 10% B. is less than 30% C. is greater than 30% D. is less than 10%