When output is 100 units, the firm's total fixed cost is $50. What will this firm's total fixed cost be if output doubles to 200 units?
A) $1,000
B) $50
C) $100
D) Can't tell from the information provided.
Answer: B
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What will be an ideal response?
The required reserve ratio is
a. the minimum fraction of vault cash balances that banks must hold as reserves. b. the minimum fraction of all assets that banks must hold as reserves. c. the minimum fraction of all liabilities that banks must hold as reserves. d. the minimum fraction of checking account balances that banks must hold as reserves. e. the minimum fraction of loans that banks must make sure are repaid.
If productivity growth in Japan exceeds productivity growth in the U.S., to the point that the resource cost in ALL Japanese industries is lower than in the U.S., then
A. there is no feasible way for the U.S. and Japan to continue to trade. B. mutually beneficial trade is possible. C. trade between the U.S. and Japan is possible, but only Japan will benefit from it. D. trade between the U.S. and Japan is possible, but only the U.S. will benefit from it.
In the monetarist view, if there is an increase in money growth then
a. the money supply and inflation will grow proportionally, with no effect on output and employment. b. the money supply grows faster than the inflation rate, with unfavorable effects on output and employment. c. the money supply grows faster than the inflation rate, leading to an increase in output and employment in the short-run. d. there will be no effect on output, employment, or inflation, in the long-run. e. both c and d.