The writing of a $1,000 check that is drawn on Bank A and deposited in Bank B
A. increases the money supply initially by $1,000.
B. reduces total reserves of Bank A by $1,000 and increases the total reserves of Bank B by the same amount.
C. reduces the required reserves of Bank A by $1,000 and increases the required reserves of Bank B by the same amount.
D. reduces the excess reserves of Bank A by $1,000 and increases the excess reserves of Bank B by the same amount.
B. reduces total reserves of Bank A by $1,000 and increases the total reserves of Bank B by the same amount.
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The gross domestic product of a small country is $4,150,000 and the size of its employed labor force is 5,000. The income per worker of the country is ________
A) $620 B) $213 C) $830 D) $445
The surplus created by a price floor will likely be
A) smaller if the good is a necessity. B) larger if the good is addictive. C) smaller if the good is a luxury. D) unaffected by the time that has elapsed since the price ceiling is implemented. E) None of the above answers is correct.
Small differences in annual growth rates of real GDP generate large differences in real GDP over time because of the:
A. diminishing returns to capital. B. importance of average labor productivity. C. limits of economic growth. D. power of compound interest.
The optimal mix of output is the most desirable combination of output attainable with existing
A. Technology and business decisions. B. Resources, technology, and social values. C. Resources and products. D. Resources, government regulations, and technology.