Over the years, the consequences of the biased-measurement of the CPI
A. increase exponentially.
B. decrease dramatically.
C. increase linearly.
D. decrease steadily.
Answer: A
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Given a desired reserve ratio of 20 percent, a commercial bank that has received a new deposit of $100 can make additional loans of
A) $0. B) $20. C) $80. D) $120.
Which of the following is NOT a reason people tolerate tariffs and quotas?
A) Ignorance B) Their personal jobs depend on tariffs and quotas. C) Costs may be hidden and hard to quantify. D) Costs of the policy are spread over a large number of people. E) The marginal expenses to fight the protection outweigh the personal marginal costs of the protection.
Bill's utility function takes the form U(I) = exp(I) where I is Bill's income. Based on this utility function, we can see that Bill is:
A) risk averse B) risk neutral C) risk loving D) He can exhibit two or more of these risk behaviors under this utility function.
Refer to Figure 9.6. As a result of this policy, consumer surplus will
A) fall to $15. B) fall to $2250. C) rise to $2500. D) fall to $5000. E) rise to $5000.