When the Fed buys securities from a bank, the quantity of money eventually decreases by a fraction of the initial change in the monetary base. Is the previous statement correct or incorrect? Explain your answer.
What will be an ideal response?
Ques. 2Mr. Scrooge owns assets worth 100 million. The rate of return on his assets is 5 percent per year. Mr. Scrooge's wealth is ________, and his income is ________.
A) 5 million a year; 100 million
B) 100 million; 5 million a year
C) 100 million; 105 million
D) 5 million a year; 100 million a year
Ques. 3The predictions of marginal utility theory
A) contradict the idea that the demand curve slopes downward.
B) support the idea that the demand curve slopes downward.
C) support the idea that the supply curve slopes upward.
D) contradict the idea that the supply curve slopes upward.
Ques. 4The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is 200 and workers cost 10 per hour. The total fixed cost of producing 10 baseball hats per hour is
A) 400
B) 200
C) 22
D) More information is needed to answer the question.
Ques. 5In the above figure, CBL is the cost of breaking the law. If the good in the figure is made illegal and penalties are imposed on both buyers and sellers, then its price per unit
A) will be higher than if it was not illegal.
B) will be lower than if it was not illegal.
C) will be the same as when it was not illegal.
D) cannot be compared with its price when it was legal.
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