A recessionary gap can be closed with
A) using a contractionary monetary policy.
B) an increase in taxes.
C) a decrease in government purchases.
D) using an expansionary fiscal policy.
Ans: D) using an expansionary fiscal policy.
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The buyer's reservation price for a particular good or service is the:
A. largest price the buyer would be willing to pay for it. B. smallest price the buyer would be willing to pay for it. C. price the buyer must pay to ensure he or she gets it. D. same as the market price.
If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 15 percent, then the bank has actual reserves of
A) $17,000. B) $22,000. C) $27,000. D) $29,000.
What was not a benefit of the development of a national market?
a. Increased production by reducing tragedy of the commons problems. b. Permitted greater division of labor. c. Enabled people and organizations to engage more in their comparative advantages. d. Led to lower costs because of increasing returns to scale could be taken advantage of in more industries.
If a nation moves upward along its per-worker production function relating output per worker to capital per worker, then: a. labor productivity rises
b. labor productivity falls. c. the amount of capital decreases, other things constant. d. labor input decreases. e. the productivity of capital rises.