When the Fed extends a $100 discount loan to the First National Bank, reserves in the banking system
A) increase by $100.
B) increase by more than $100.
C) decrease by $100.
D) decrease by more than $100.
A
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Compared to IACs, LDCs are often characterized by:
a. higher life expectancy. b. higher adult literacy rates. c. higher daily calorie supply. d. lower per capita energy consumption.
The presence of market failures implies that:
A. money is not an effective tool for exchange in a market system. B. there is an active role for government, even in a market system. C. individuals and firms should strive to be self-sufficient rather than specialize. D. command systems are superior to market systems in the allocation of resources.
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country B could potentially make would be:
A. (300 iPods, 500 tablets). B. (100 iPods, 2,000 tablets). C. (400 iPods, 2,000 tablets). D. (200 iPods, 1,500 tablets).
The long-run equilibrium for a monopolistically competitive firm is efficient because its profits equal zero in the long run.
Answer the following statement true (T) or false (F)