Monetary theorists maintain that to eliminate the business cycle, it is necessary to eliminate
a. money.
b. currency.
c. bank creation of check able deposits.
d. bank reserves.
c. bank creation of check able deposits.
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The reason economists consider monopoly to be socially undesirable is that monopolists:
A. can charge any price they want. B. produce less than the socially optimal level of output. C. earn too much economic profit. D. exploit the inelastic nature of demand.
How can a proprietorship or partnership raise funds for expansion?
A) take on a partner or more partners B) reinvest profit back into the business C) borrow from someone or an institution willing to lend the funds D) Any of these would generate funds for expansion.
On the graph above, suppose the economy is at point F when there is a permanent positive supply shock. The new long-run equilibrium is at point ________
A) F B) H C) I D) G E) none of the above
The balance of trade is the value of a nation's ____________
a. goods and service exports times goods and service imports b. goods exports subtracted from goods imports c. goods imports subtracted from goods exports d. net goods imports plus net capital inflows