The one organization that has the power to change the total amount of reserves in the banking system is the:
A. Congress.
B. Executive Branch of the Federal Government.
C. U.S. Treasury.
D. Federal Reserve System.
Answer: D
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If Mexico has a comparative advantage in oil compared to the U.S., it means that the opportunity cost of producing oil in Mexico is
a. relatively high b. relatively low c. zero d. infinite e. higher than in the U.S.
Rising prices for a natural resource stimulate
A. the development of complements for the resource. B. the development of substitutes for the resource. C. the development of externalities from the resource. D. the tendency to consume before the resource expires.
Diminishing returns begin to occur when the
A. marginal product curve intersects the average product curve. B. slope of the ray from the origin reaches a maximum. C. slope of the total product curve reaches a maximum. D. total product curve reaches a maximum.
The equilibrium quantity of money in circulation is determined by the:
A. nominal interest rate, real income, and the price level. B. decentralized interactions between households and businesses. C. interaction of an upward-sloping money supply curve and a downward-sloping money demand curve. D. Federal Reserve.