Transfer payments provide benefits to
a. all those in need
b. those who have paid into governmental funds through their workplace
c. those who are eligible recipients
d. those who provide some service to the government
e. anyone transferring from one stage of their life to another
The minimum wage is constant across the United States.
If a bank receives a deposit of $3,000 and loans out $2,000, what changes will occur on
the bank’s balance sheet (after all checks involved with the loan are cleared)?
a. Reserves decrease by $3,000, total assets decrease by $1,000, and total liabilities
increase by $3,000.
b. Reserves increase by $1,000, total assets increase by $2,000, and total liabilities
increase by $3,000.
c. Reserves increase by $3,000, total assets by increase $3,000, and total liabilities
increase by $3,000.
d. Reserves increase by $3,000, total assets by increase $2,000, and total liabilities
decrease by $3,000.
e. Reserves increase by $1,000, total assets increase by $3,000, and total liabilities
increase by $3,000.
The employment-to-population ratio in the U.S. is expected to decline as the baby boom
generation retires.
“As income rises, the demand for most goods also rises.” This statement
The price elasticity of demand is the
Economics is the study of
An increase in the cost of acquiring human capital will shift the labor supply curve to
the left; eventually, this will tend to decrease the equilibrium wage rate.
Which of the following countries achieved economic growth, in part, by reducing its
population growth rate?
a. The former Soviet Union
b. The United States
c. The United Kingdom
d. China
e. Hong Kong
In a perfectly competitive labor market,
A bank’s balance sheet can show a negative net worth and yet its income statement can
show a profit for the year.
Given the balance sheet below and assuming a required reserve ratio of 20 percent, how
much (in dollar terms) must the bank hold in required reserves?
a. $2 million
b. $3 million
c. $4 million
d. $7 million
e. $16 million
Each of the following, except one, can explain why a given job pays a compensating
wage differential. Which is the exception?
Which of the following cities does not have a Federal Reserve Bank?
a. Dallas
b. Kansas City
c. Los Angeles
d. Cleveland
e. Miami
If goods are produced abroad but consumed domestically,
a. those goods are termed imports
b. international trade has not occurred
c. the domestic economy is economically inefficient
d. there are no gains from specialization
e. those goods are termed exports
What does the supply curve for Mexican pesos tell us?
a. The number of pesos people will want to sell at each different exchange rate
b. The number of pesos people will want to sell at each level of output
c. The number of pesos people will want to buy at each different exchange rate
d. The number of pesos people will want to buy in each different time period
e. The number of pesos people will want to sell at each different interest rate.
Which of the following is a characteristic of entrepreneurship?
An index number is important only in a relative sense – in comparison to an index
number from another period.
Figure 12-3 illustrates the marginal revenue product of labor and three possible labor
supply curves facing a firm that hires industrial design engineers. The firm initially is in
equilibrium at point e. Then, the government initiates a subsidy for the cost of training
for new industrial design engineers, lowering the cost of training. Assume that the full
impact of the change in training costs is indicated by one of the curves in the figure.
After all long-run adjustments are made, this firm pays a wage
