Economics

Under the Exchange Rate Mechanism of the European Monetary System, when the British pound depreciate

Under the Exchange Rate Mechanism of the European Monetary System, when the British pound depreciate

Under the Exchange Rate Mechanism of the European Monetary System, when the British pound depreciated below its lower limit against the German mark, the Bank of England was required to buy ________ and sell ________, thereby ________ international re

valputin   217   3 Replies

Meela

The Fed prefers that ________ so that ________.

The Fed prefers that ________ so that ________.

The Fed prefers that ________ so that ________.
A) banks borrow reserves from each other; the Fed can monitor banks for credit risk
B) banks borrow reserves from the Fed; banks can monitor each other for credit risk
C) banks borrow res

valputin   217   3 Replies

Meela

________ assist in the initial sale of securities in the primary market; ________ assist in the trad

________ assist in the initial sale of securities in the primary market; ________ assist in the trad

________ assist in the initial sale of securities in the primary market; ________ assist in the trading of securities in the secondary markets.
A) Investment banks; mutual funds
B) Investment banks; securities brokers and dealers
C) Co

valputin   217   3 Replies

Meela

As a result of the global financial crisis several of the large, free-standing investment banking fi

As a result of the global financial crisis several of the large, free-standing investment banking fi

As a result of the global financial crisis several of the large, free-standing investment banking firms chose to become bank holding companies. This means that they will now be regulated by
A) the state banking authorities.
B) the Treasury

valputin   217   3 Replies

Meela

If the price level doubles, the value of money

If the price level doubles, the value of money

If the price level doubles, the value of money
A) more than doubles, due to scale economies.
B) rises but does not double, due to diminishing returns.
C) falls by 50 percent.
D) doubles.

valputin   217   3 Replies

Meela

Asymmetric information means (Multiple Choice Question)

Asymmetric information means (Multiple Choice Question)

Asymmetric information means
A) some market participants interpret news differently.
B) some news are more important than others.
C) the impact of news on economic outcomes depends on the context.
D) some market participants have

Ao9   217   3 Replies

Gordis

The consumer's lifetime budget constraint states that

The consumer's lifetime budget constraint states that

The consumer's lifetime budget constraint states that
A) the present value of lifetime consumption plus the present value of lifetime taxes to be paid must be equal to the present value of lifetime income.
B) the present value of lifet

Ao9   217   3 Replies

Gordis

For the period 1947-2012, the behavior of the U.S. money supply is best characterized as

For the period 1947-2012, the behavior of the U.S. money supply is best characterized as

For the period 1947-2012, the behavior of the U.S. money supply is best characterized as
A) somewhat more volatile than GDP.
B) nearly constant over time.
C) extremely volatile and unstable.
D) somewhat smoother than GDP.

Ao9   217   3 Replies

Gordis

The official dating of the most recent recession places its timing as

The official dating of the most recent recession places its timing as

The official dating of the most recent recession places its timing as
A) 2008-2009.
B) 2008.
C) 2007.
D) 2007-2009.

Ao9   217   3 Replies

Gordis

A situation in which a country does not trade with other countries is called

A situation in which a country does not trade with other countries is called

A situation in which a country does not trade with other countries is called
A) autarky.
B) self-actualization.
C) autonomy.
D) independence.

Tidy   217   2 Replies

Sydnie

Which of the following countries is not one of the top three exporting countries in the world?

Which of the following countries is not one of the top three exporting countries in the world?

Which of the following countries is not one of the top three exporting countries in the world?
A) China
B) Germany
C) South Korea
D) the United States

Tidy   217   1 Reply

Sydnie

Suppose the federal budget deficit for the year was $100 billion and the economy was in a recession.

Suppose the federal budget deficit for the year was $100 billion and the economy was in a recession.

Suppose the federal budget deficit for the year was $100 billion and the economy was in a recession. If the economy had been at potential GDP, it is estimated that tax revenues would have been $60 billion higher and government spending on transfer pa

Tidy   217   1 Reply

Sydnie

Which of the following would most likely induce the Federal Reserve to conduct expansionary monetary

Which of the following would most likely induce the Federal Reserve to conduct expansionary monetary

Which of the following would most likely induce the Federal Reserve to conduct expansionary monetary policy? A significant decrease in
A) oil prices.
B) business taxes.
C) income tax rates.
D) investment spending.

Tidy   217   1 Reply

Sydnie

A decrease in real GDP can

A decrease in real GDP can

A decrease in real GDP can
A) shift money demand to the right and decrease the interest rate.
B) shift money demand to the right and increase the interest rate.
C) shift money demand to the left and decrease the interest rate.
D)

Tidy   217   2 Replies

Sydnie

If the aggregate demand curve and the aggregate supply curve intersect at a level of real GDP more t

If the aggregate demand curve and the aggregate supply curve intersect at a level of real GDP more t

If the aggregate demand curve and the aggregate supply curve intersect at a level of real GDP more than potential GDP, there is
A) a recessionary gap.
B) an inflationary gap.
C) a falling price level.
D) a rising real GDP.
E)

Loraine   217   2 Replies

Sydnie

Which of the following shifts the aggregate demand curve rightward?

Which of the following shifts the aggregate demand curve rightward?

Which of the following shifts the aggregate demand curve rightward?
A) a decrease in expected future income
B) a decrease in the price level
C) a tax cut
D) a decrease in the quantity of money
E) a decrease in government expe

Loraine   217   1 Reply

Sydnie

"Even though we can convert them into money, deposits at banks are not money." Is the previous state

"Even though we can convert them into money, deposits at banks are not money." Is the previous state

"Even though we can convert them into money, deposits at banks are not money." Is the previous statement correct or not?

Loraine   217   1 Reply

Sydnie

Decisions of ________ determine the magnitude of the monetary multiplier.

Decisions of ________ determine the magnitude of the monetary multiplier.

Decisions of ________ determine the magnitude of the monetary multiplier.
A) only the Fed
B) only the public
C) both the Fed and the public
D) neither the Fed nor the public
E) the Fed and the U.S. Congress

Loraine   217   1 Reply

Sydnie

If the desired reserve ratio is 10 percent and there is no currency drain, then a $100 increase in t

If the desired reserve ratio is 10 percent and there is no currency drain, then a $100 increase in t

If the desired reserve ratio is 10 percent and there is no currency drain, then a $100 increase in the monetary base leads the banking system to increase the quantity of money by
A) $1,000.
B) $400.
C) $900.
D) $110.
E) $1,10

Loraine   217   1 Reply

Sydnie

Suppose the currency drain ratio is 25 percent and the desired reserve ratio is 20 percent. The mone

Suppose the currency drain ratio is 25 percent and the desired reserve ratio is 20 percent. The mone

Suppose the currency drain ratio is 25 percent and the desired reserve ratio is 20 percent. The money multiplier equals
A) 4.00.
B) 3.00.
C) 2.78.
D) 2.00.
E) 5.42.

Loraine   217   1 Reply

Sydnie

The level of real GDP in the long run is called

The level of real GDP in the long run is called

The level of real GDP in the long run is called
A) potential GDP.
B) short-run GDP.
C) frictional GDP.
D) low-capacity GDP.

Tidy   217   2 Replies

Smoooth

Governments should promote education because education contributes to the nation's

Governments should promote education because education contributes to the nation's

Governments should promote education because education contributes to the nation's
A) employment.
B) free markets.
C) economic growth potential.
D) international trade.
E) protection of property rights.

Loraine   217   2 Replies

Smoooth

The circular flow of income shows that GDP can be measured as the sum of wages, interest, rent, and

The circular flow of income shows that GDP can be measured as the sum of wages, interest, rent, and

The circular flow of income shows that GDP can be measured as the sum of wages, interest, rent, and profits received by households or total expenditures on goods and services by households, firms, government, and the rest of the world.
True[

Tidy   217   2 Replies

Chimelo46

The circular flow diagram shows that

The circular flow diagram shows that

The circular flow diagram shows that
A) the value of total income is equal to the total value of expenditures on final goods and services.
B) firms pay households wages, and households receive transfer payments from firms.
C) househol

Tidy   217   2 Replies

Chimelo46

The labor force is the

The labor force is the

The labor force is the
A) number of employed people plus the number of unemployed people.
B) total population divided by the number of employed people.
C) number of employed people in the working-age population.
D) working-age po

Loraine   217   2 Replies

Chimelo46

The business cycle describes (Multiple Choice Question)

The business cycle describes (Multiple Choice Question)

The business cycle describes
A) the change in potential GDP over time.
B) the change in the standard of living across countries.
C) the behavior of real GDP over time.
D) the behavior of nominal GDP over time.
E) the behavior

Loraine   217   2 Replies

Chimelo46

Which of the following characterizes the market that Starbucks competes in?

Which of the following characterizes the market that Starbucks competes in?

Which of the following characterizes the market that Starbucks competes in?
A) All coffeehouses face horizontal demand curves.
B) Coffeehouses sell identical products.
C) Barriers to entry are low.
D) There are a small number o

Tidy   217   1 Reply

VincenzoD

The Federal Trade Commission (FTC) Act

The Federal Trade Commission (FTC) Act

The Federal Trade Commission (FTC) Act
A) gave the FTC full power to regulate mergers.
B) closed the loopholes in the Sherman and Clayton Acts.
C) divided authority to police mergers between the FTC and the Department of Justice.

Tidy   217   1 Reply

VincenzoD

A firm in monopolistic competition is similar to a firm in perfect competition because they both

A firm in monopolistic competition is similar to a firm in perfect competition because they both

A firm in monopolistic competition is similar to a firm in perfect competition because they both
A) can earn only zero economic profit in the long run.
B) can earn only zero economic profit in the short run.
C) maximize their profits b

Loraine   217   1 Reply

VincenzoD

How are sunk costs and fixed costs related?

How are sunk costs and fixed costs related?

How are sunk costs and fixed costs related?
A) They are not related in any way.
B) Sunk costs cannot be recovered and fixed costs can be avoided by shutting down.
C) In the short run they are equal to each other.
D) In the long r

Tidy   217   1 Reply

Sydnie

An increase in a firm's fixed cost will not change the firm's profit-maximizing output in the short

An increase in a firm's fixed cost will not change the firm's profit-maximizing output in the short

An increase in a firm's fixed cost will not change the firm's profit-maximizing output in the short run.
True or false?

Tidy   217   2 Replies

Smoooth

The demand curve for an individual seller's product in perfect competition is

The demand curve for an individual seller's product in perfect competition is

The demand curve for an individual seller's product in perfect competition is
A) the same as market demand.
B) downward sloping.
C) vertical.
D) horizontal.

Tidy   217   2 Replies

Smoooth

Which of the following is not a characteristic of a monopolistically competitive market structure?

Which of the following is not a characteristic of a monopolistically competitive market structure?

Which of the following is not a characteristic of a monopolistically competitive market structure?
A) There is a large number of independently acting small sellers.
B) All sellers sell products that are differentiated.
C) There are low

Tidy   217   2 Replies

Smoooth

In the short run, marginal product of labor increases at first and then falls because

In the short run, marginal product of labor increases at first and then falls because

In the short run, marginal product of labor increases at first and then falls because
A) as more labor is hired, they are not as skilled as the first ones hired.
B) there are fewer opportunities for division of labor and specialization when

Tidy   217   2 Replies

Smoooth

If a perfectly competitive wheat farmer is maximizing its profit and then increases its output, the

If a perfectly competitive wheat farmer is maximizing its profit and then increases its output, the

If a perfectly competitive wheat farmer is maximizing its profit and then increases its output, the farmer's
A) total revenue increases, but total cost rises by more so that the farmer's total profit decreases.
B) total revenue de

Loraine   217   2 Replies

Smoooth

Jake is a corn farmer in Nebraska. He rents his land on a long-term lease for $250,000 a year. He pa

Jake is a corn farmer in Nebraska. He rents his land on a long-term lease for $250,000 a year. He pa

Jake is a corn farmer in Nebraska. He rents his land on a long-term lease for $250,000 a year. He pays his farm hands $128,000 a year. Is his rent a fixed cost or a variable cost? Are the wages he pays his workers a fixed cost or a variable cost? Bri

Loraine   217   2 Replies

Chimelo46

Which of the following is true?

Which of the following is true?

Which of the following is true?
A) MSC = MC + Marginal external cost
B) MC = Marginal external cost - MSC
C) MC = Marginal external benefit + MSC
D) MSC = Marginal external cost + marginal external benefit
E) MSC = Marginal e

Loraine   217   2 Replies

Chimelo46

How does a tariff affect the domestic price of the import, the domestic consumption, the domestic pr

How does a tariff affect the domestic price of the import, the domestic consumption, the domestic pr

How does a tariff affect the domestic price of the import, the domestic consumption, the domestic production, and the quantity imported?

Loraine   217   1 Reply

VincenzoD

In the United States, out-of-pocket spending on health care as a percentage of all spending on healt

In the United States, out-of-pocket spending on health care as a percentage of all spending on healt

In the United States, out-of-pocket spending on health care as a percentage of all spending on health care has ________ since 1960.
A) slowly risen
B) steadily declined
C) more than doubled
D) remained stable

Tidy   217   1 Reply

VincenzoD

Health insurance companies impose deductibles on policies and co-payments on claims

Health insurance companies impose deductibles on policies and co-payments on claims

Health insurance companies impose deductibles on policies and co-payments on claims
A) to increase sales.
B) to reduce moral hazard problems.
C) to reduces sunk costs.
D) to increase prices.

Tidy   217   1 Reply

VincenzoD