When you deposit $50 in your account at First National Bank and a $100 check you have written on this account is cashed at Chemical Bank, then A) the assets of First National rise by $50. B) the assets of Chemical Bank rise by $50. C) the reserves at First National fall by $50. D) […]
Date: September 10th, 2020
GDP can increase from one year to the next by: A) increases in prices while quantities of goods and services are constant. B) increases in the quantities of goods and services produced while prices remain constant. C) both prices and quantities of goods and services increase. D) all of the above. ANSWER D
Date: September 10th, 2020
The currency component includes paper money and coins held in A) bank vaults. B) ATMs. C) the hands of the nonbank public. D) the central bank. ANSWER C
Date: September 10th, 2020
Assume a firm is currently producing 800 units of output, P = $10, MC = $10, ATC = $8, and AVC = $6. In this case, the firm is maximizing its profit, which equals $1,600. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The system of accounts for each country, based on the circular flow, whose purpose is to measure the level of economic activity is called: A) the underground economy. B) national income accounting. C) bookkeeping. D) none of the above. ANSWER B
Date: September 10th, 2020
The barter system requires the double coincidence of wants to be fulfilled. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
McDonald’s and its major competitors compete based: A) only on the price. B) only on the basis of product characteristics. C) on both the price and product characteristics. D) none of the above because the fast-food industry is perfectly competitive. ANSWER C
Date: September 10th, 2020
The other checkable deposits component of the M1 measure reported by the Federal Reserve includes A) negotiable time deposits. B) money market mutual fund shares. C) automatic transfer from savings accounts. D) money market deposit accounts. ANSWER C
Date: September 10th, 2020
The public’s fear of centralized power and distrust of moneyed interests led to the demise of the first two experiments in central banking, otherwise known as A) the First Bank of the United States and the Second Bank of the United States. B) the First Bank of the United States and the Central Bank of […]
Date: September 10th, 2020
Refer to Scenario 1. What is the total output when 2 hours of labor are employed? A) 80 B) 100 C) 180 D) 200 ANSWER C
Date: September 10th, 2020
