Assume a firm is facing the following situation: At Q = 1,000, P = $10, MC = $10, ATC = $18, and AVC = $16. This firm should shut down and, in so doing, limit its losses to $2,000. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
When a $10 check written on the First National Bank of Chicago is deposited in an account at Citibank, then A) the liabilities of the First National Bank increase by $10. B) the reserves of the First National Bank increase by $ 10. C) the liabilities of Citibank increase by $10. D) the assets of […]
Date: September 10th, 2020
The store of value does not require that money hold its value of time in terms of its purchasing power. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Transfer payments are: A) included in GDP. B) not included in GDP. C) included in both GDP and GNP. D) none of the above. ANSWER B
Date: September 10th, 2020
The components of the U.S. M1 money supply are demand and checkable deposits plus A) currency. B) currency plus savings deposits. C) currency plus travelers checks. D) currency plus travelers checks plus money market deposits. ANSWER C
Date: September 10th, 2020
The Second Bank of the United States A) was disbanded in 1811 when its charter was not renewed. B) had its charter renewal vetoed in 1832. C) is considered to be the primary cause of the bank panic of 1907. D) None of the above. ANSWER B
Date: September 10th, 2020
If the CPI in 2004 is 200, and in 2005 the CPI is 180, the rate of inflation from 2004 to 2005 is A) 20%. B) 10%. C) 0%. D) -10%. ANSWER D
Date: September 10th, 2020
If the CPI is 120 in 1996 and 180 in 2002, then between 1996 and 2002, prices have increased by A) 180%. B) 80%. C) 60%. D) 50%. 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
