Monetarists tend to think that the aggregate demand curve is
A) stable.
B) vertical.
C) horizontal.
D) sensitive to changes in investment spending.
A
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The marginal social cost of producing the last unit of a good is $1.10 while the consumers' willingness to pay for the last unit is $0.80. The deadweight loss from the production of the last unit of the good in equilibrium is ________
A) $1.10 B) $1.90 C) $0.50 D) $0.30
Which of the following is least accurate about the meat packing industry about 1900?
a. The 1898 "embalmed beef" scandal documented how adulterated beef was provided to the American Army during the Spanish-American War. b. Upton Sinclair's 1906 novel The Jungle raised national concern about the unsanitary conditions involved in meat processing. c. Meat packing firms welcomed government regulation of the industry because it gave firms clear and accurate public information about the shipments of every other firm, which helped firms to engage in cartel behavior. d. Federal regulations helped level the playing field so that small firms could compete more easily against large firms.
Assume the required reserve ratio (RRR) is 10 percent. If the Fed purchases a $5,000 bond from a bond dealer who then deposits the $5,000 in a HSBC Bank account, what has happened to the money supply?
a. It has decreased by $5,000. b. It has increased by $5,000. c. It has decreased by $4,500. d. It has increased by $4,500. e. There has been no change in the money supply.
If Ana devotes all her time to making fudge, she can make 3 pounds of fudge an hour, and if she devotes all her time to making toffee, she can make 2 pounds of toffee an hour. If Leo devotes all his time to making fudge, he can make 4 pounds of fudge an hour, and if he devotes all his time to making toffee, he can make 5 pounds of toffee an hour. According to The Principle of Comparative Advantage, Ana and Leo will be able to produce more overall if:
A. the Principle of Comparative Advantage does not hold in this example. B. both Leo and Ana specialize in fudge. C. Ana specializes in fudge and Leo specializes in toffee. D. Leo specializes in fudge and Ana specializes in toffee.