Adding members to a military alliance _____
a. will always strengthen the alliance
b. will cause the alliance to dissolve
c. might weaken the alliance
d. will always weaken the alliance
c
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Suppose the reserve requirement ratio is 20 percent. Assuming no bank holds excess reserves and nobody withdraws cash, a $10,000 injection of new reserves by the Fed can create: a. $2,000 in new checkable deposits
b. $10,000 in new checkable deposits. c. $50,000 in new checkable deposits. d. $500,000 in new checkable deposits. e. $5,000 in cash.
Jermaine believes that it is important to maximize the well-being of the worst-off person in society. He believes in the principle called the
If the price of a company's stock truly reflects the value of a share in the company, then
A. abrupt stock price changes reflect abrupt changes in the public's perception of fundamentals and risk. B. stock prices can only change abruptly when accounting scandals are uncovered, as in 2002. C. it is impossible for the stock price to change by 20% in a single day, as in 1987. D. it is impossible for the stock price to increase by 84% within a single year, as in 1999.
Consider the following information, and assume that opportunity costs are constant: On one hand, residents of Country A can produce more corn in a year than residents of Country B, but they can produce computers at a lower opportunity cost than residents
of country B. On the other hand, residents of country B can produce more computers in a year than residents of Country A, but they can produce corn at a lower opportunity cost than residents of country A. It can be concluded that residents of A) Country A should produce corn and trade it for computers produced in Country B. B) Country B should produce computers and trade them for corn produced in Country B. C) Country A should produce computers and trade them for corn produced in Country B. D) both countries should choose not to trade.