A commercial bank like Comerica creates money by
A) printing paper money.
B) earning profits.
C) selling corporate bonds.
D) making loans.
Assuming the United States is the “domestic” country, if the real exchange rate between
the United States and Russia decreases from 28 to 23,
A) the prices of U.S. goods and services have decreased by 5% relative to Russia.
B) the prices of U.S. goods and services have increased by 25.5% relative to Russia.
C) the prices of U.S. goods and services have decreased by 18% relative to Russia.
D) the prices of U.S. goods and services have increased by 22% relative to Russia.
Figure 4-2
What area represents the decrease in producer surplus when the market price falls from
P2to P1?
A) C + E
B) A + C + E
C) A + B
D) B + D
The price of a seller’s product in perfect competition is determined by
A) the individual seller.
B) a few of the sellers.
C) market demand and market supply.
D) the individual demander.
Table 18-7
Table 18-7 shows the amount of taxes paid on various levels of income. The tax system
is
A) progressive throughout all levels of income.
B) proportional throughout all levels of income.
C) regressive throughout all levels of income.
D) progressive between $10,000 and $12,000 of income and regressive between
$16,000 and $22,000.
The aggregate demand curve will shift to the left ________ the initial decrease in
government purchases.
A) by less than
B) by more than
C) by the same amount as
D) sometimes by more than and other times by less than
When the price level falls from 135 to 120, the aggregate level of GDP supplied falls
from $140 billion to $125 billion. This ________ relationship represents the ________
relationship between GDP and the price level.
A) negative; short-run
B) positive; short-run
C) negative; long-run
D) positive; long-run
A partnership is ________ type of business.
A) the most common
B) the least common
C) the least risky
D) the most profitable
Figure 10-9
Consider the budget constraint BC1. If the price of DVDs is $20 and the price of CDs is
$10, what is the consumer’s income?
A) $120
B) $240
C) $360
D) $480
When the marginal product of labor rises,
A) the marginal cost of production will exceed the average total cost.
B) the marginal cost of production also rises.
C) the marginal cost of production falls.
D) the average total cost of production also rises.
Figure 13-2
Ceteris paribus, an increase in the expected future price level would be represented by a
movement from
A) SRAS1 to SRAS2.
B) SRAS2 to SRAS1.
C) point A to point B.
D) point B to point A.