Refer to Figure 1.7. If this economy is currently producing at point F, then by employing more resources this economy
A. Can move to point D, but not points G or J.
B. Can move to point G, but not points D or J.
C. Can move to points D, G, or J.
D. Will remain at point F.
Answer: C
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One of the serious drawbacks of the deposit insurance system in the United States is that:
A. the system took away the Federal Reserve's ability to change reserve requirements. B. if insured intermediaries make many bad loans, the taxpayers may be responsible for covering the losses. C. the system took away the Federal Reserve's ability to conduct open-market operations. D. bank failures continue to occur regularly.
Which of the following production functions exhibits constant returns to scale?
A) q = KL B) q = KL0.5 C) q = K + L D) q = log(KL)
Which of the following is a price floor?
A) rent controls B) minimum wage rates C) a freeze on upward-moving gasoline prices D) college tuition caps
We might predict that Japan has a comparative advantage compared to Russia in the production of hi-tech electronics because Japan has:
A. a climate is more suitable for electronics. B. more land available to build manufacturing plants on. C. more advanced electronics technology. D. more unskilled labor available for production.