Refer to the above graph. If the production possibilities curve for an economy is at CD but the economy is operating at point X, the reasons are most likely to be because of:
A. Technological progress and industrial change
B. Increases in the quantity and the quality of resources
C. Improvement in labor productivity and the number of work-hours
D. Unemployment and inefficient allocation of resources
D. Unemployment and inefficient allocation of resources
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Anticipated inflation is associated with cost increases which are fully expected
Indicate whether the statement is true or false
What is the difference between directly holding stock in a company like Apple and investing in a mutual fund that holds Apple stock?
What will be an ideal response?
Fogel (1964) came up with two estimates of social savings (? and ?). What do they represent?
(a) The level of industrial productivity using railroads and the level not using railroads (b) The lowered benefit of transport for agricultural goods using railroads and the lowered benefit of transport for all goods and passengers using railroads (c) The lower output of the U.S. economy using transportation financed through domestic capital and foreign capital (d) The cost of shipping goods by railroads and the cost of shipping by waterways and wagon transport
Suppose a bank has $100,000 in deposits, a required reserve ratio of 20 percent, and total reserves of $20,000. Then this bank can make new loans in the amount of
A. $20,000. B. $40,000. C. $0. D. $100,000.