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 […]
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
________ is the narrowest monetary aggregate that the Fed reports. A) M0 B) M1 C) M2 D) M3 ANSWER B
When a firm decides to shut down in the short run, its losses are limited to its fixed costs. Indicate whether the statement is true or false ANSWER TRUE
A firm has reached its shutdown point when price is equal to minimum average total cost. Indicate whether the statement is true or false ANSWER FALSE
A subway token does not fulfill the three functions of money. Indicate whether the statement is true or false ANSWER FALSE
If the aggregate price level at time t is denoted by Pt, the inflation rate from time t – 1 to t is defined as A) πt = (Pt – Pt – 1)/Pt – 1. B) πt = (Pt + 1 – Pt – 1)/Pt – 1. C) πt = (Pt + 1 – Pt […]
Assume that after the fifth worker, each additional worker a firm hires is less productive than the previous worker. Based on this information, we can conclude that beyond the fifth worker, the average product of labor will: A) increase. B) stay the same. C) decrease. D) cannot be determined without additional information. ANSWER D
When you deposit $50 in currency at Old National Bank A) its assets increase by less than $50 because of reserve requirements. B) its reserves increase by less than $50 because of reserve requirements. C) its liabilities increase by $50. D) its liabilities decrease by $50. ANSWER C
Zoran, a Croatian citizen, only works in the United States. The value added to production from his employment is: A) included in Croatian GDP. B) included only in U.S. GDP. C) included only in U.S. GNP. D) not included in either U.S. GDP or U.S. GNP. ANSWER B