Which of the following will lower interest rates in the short run?
a. an increase in reserve requirements
b. open market sales by the Fed
c. a decrease in real GDP
d. an increase in the price level
c
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Suppose Cathy and Lewis work in a bakery making pies and cakes. Suppose it takes Cathy 1.5 hours to make a pie and 1 hour to make a cake, and suppose it takes Lewis 2 hours to make a pie and 1.5 hours to make a cake. Which of the following statements is correct?
A. Lewis should specialize in pies, and Cathy should specialize in cakes. B. Cathy should specialize in pies, and Lewis should specialize in cakes. C. Cathy should specialize in both pies and cakes. D. There are no gains from specialization and trade.
Commodities that last less than three years and may be consumed very quickly are called:
A) durable goods B) nondurable goods C) services D) none of the above
In Figure 30.2, the equilibrium wage rate is
A. $20 per hour. B. $12 per hour. C. $24 per hour. D. $16 per hour.
Welfare banks are
A. illegal. B. check-cashing stores. C. credit unions operated by local welfare departments. D. bank branches located in poor neighborhoods.