The money supply is $6 million, currency held by the nonbank public is $2 million, and the reserve—deposit ratio is 0.1. The monetary base is equal to
A) $2 million.
B) $2.4 million.
C) $2.6 million.
D) $4 million.
B
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To increase total revenue, firms with ________ demand should lower price, and firms with ________ demand should increase price.
A. elastic; inelastic B. unit; inelastic C. elastic; unit D. inelastic; elastic
What does "there is no such thing as a free lunch" mean in economics?
A. Sometimes people may take friends out to lunch and pay for them. B. All items in the lunch menu have specific prices. C. Products only have value because people are willing to pay for them. D. Scarce resources are used up to provide "freebies" and giveaways.
When negative externalities exist in a market, if the producers are forced to pay a Pigouvian tax then:
A. those who interact in the market will lose surplus. B. those who interact in the market will gain surplus. C. producers will gain surplus. D. those who do not interact in the market but are affected by the externality will lose surplus.
In economics, scarcity implies
A) disutility. B) utility. C) choice. D) inefficiency. E) a, c, and d