The market demand curve is:
A) downward sloping and is flatter than an individual’s demand curve.
B) upward sloping and is flatter than an individual’s demand curve.
C) downward sloping and is steeper than an individual’s demand curve.
D) upward sloping and is steeper than an individual’s demand curve.
Trade deficits always lead to future decreases in consumption if the trade deficits
A) support current investment.
B) support current consumption.
C) support either current investment or current consumption.
D) require borrowing from abroad.
Excessive creation of new money to finance a government budget deficit can lead to
A) disinflation.
B) deflation.
C) stagflation.
D) hyperinflation.
Suppose that your tuition to attend college is $10,000 per year and you spend $4,000
per year on room and board. If you were working full time instead of attending college,
you could earn $20,000 per year. What is your opportunity cost of attending college for
one year?
A) $14,000
B) $24,000
C) $30,000
D) $34,000
The market demand curve
A) shows the relationship between the price of a good and the quantity that all
consumers together are willing to buy.
B) is drawn assuming that variables such as income and tastes are variable.
C) is drawn assuming that the number of consumers is variable.
D) is drawn assuming that the selling price is fixed.
In the United States, runs on banks are prevented because
A) banks keep 100 percent of their deposits on hand.
B) the government guarantees bank accounts for up to $250,000.
C) banks have the option of denying depositors access to their funds.
D) banks are forbidden to make unprofitable loans.
If the real interest rate is 4 percent and the nominal interest rate is 7 percent, this
implies an expected inflation rate of
A) 3 percent.
B) 4 percent.
C) 5.5 percent.
D) 11 percent.
Which of the following ways does the federal government finance its expenditures?
A) tax revenues
B) issuing bonds
C) creating money
D) all of the above
Table 11.1
Refer to Table 11.1. At the equilibrium level of output, y*, what is the trade balance?
A) -1,345.00
B) -985.00
C) -276.25
D) -186.25
Figure 18.1 Refer to Figure 18.1. After trade and specialization begin, the maximum
amount of umbrellas that Duckland can consume is:
A) 90.
B) 100.
C) 150.
D) 120.