Consider the following: Farmer Jones bought seed and fertilizer for $100. He grew wheat that he sold to the Acme Bread Company for $200. Acme Bread produced and sold bread to the ABC Grocery Store for $250. Consumers bought the bread from the grocery for $350. How much was added to the GDP?

When a consumer is at his or her best affordable point, the budget line

A) is flatter than the highest attainable indifference curve. B) is tangent to the highest attainable indifference curve. C) is steeper than the highest attainable indifference curve. D) does not touch the highest attainable indifference curve.

Dutch Disease is associated with a dramatic decline in the demand for a primary commodity produced by a country

a. True b. False Indicate whether the statement is true or false

Suppose a bank has demand deposits of $2,500, excess reserves of $125, and a reserve requirement of 25 percent. What is the loss in the money expansion process of the whole banking system if the bank decides to lend out only $100?

a. $100 b. $150 c. $200 d. $400 e. $500

Which of the following is an example of a normative statement?

A. Higher prices cause consumers to buy less. B. There should be no unemployment in an advanced industrial society. C. Equilibrium price implies that quantity demanded equals quantity supplied. D. The unemployment rate is six percent.