The amount of output a firm can produce with a given quantity of fixed and variable inputs is called: A) total product. B) average variable product. C) marginal product. D) total fixed product. ANSWER A
Date: September 10th, 2020
Dodd-Frank addressed many of the issues that led to the financial crisis. Which of the following was NOT addressed by Dodd-Frank regulations? A) stricter consumer protection laws B) privately owned, government-sponsored enterprises (GSEs) such as Fannie mae and Freddie Mac C) resolution authority over the large financial institutions D) higher requirements on firms dealing in […]
Date: September 10th, 2020
In the money market, an increase in money demand will: A) result in a rightward shift in the money demand curve increasing interest rates. B) result in a rightward shift in the money demand curve decreasing interest rates. C) result in a leftward shift in the money demand curve increasing interest rates. D) result in […]
Date: September 10th, 2020
Assume a factory that currently employs 25 workers and owns a factory with 10,000 square feet of floor space is considering doubling the size of its factory. Economists would classify this as: A) a short-run decision. B) a long-run decision. C) neither a short-run nor a long-run decision. D) both a short-run and a long-run […]
Date: September 10th, 2020
The measure of the aggregate price level that is frequently the focus of Federal Reserve officials is the A) consumer price index. B) producer price index. C) GDP deflator. D) PCE deflator. ANSWER D
Date: September 10th, 2020
Open market purchase will result in: A) increase in bank reserves and a decrease in the federal funds rate. B) increase in bank reserves and an increase in the federal funds rate. C) decrease in bank reserves and a decrease in the federal funds rate. D) decrease in bank reserves and an increase in the […]
Date: September 10th, 2020
Asset transformation can be described as A) borrowing long and lending short. B) borrowing short and lending long. C) borrowing and lending only for the short term. D) borrowing and lending for the long term. ANSWER B
Date: September 10th, 2020
When Jane Brown writes a $100 check to her nephew and he cashes the check, Ms. Brown’s bank ________ assets of $100 and ________ liabilities of $100. A) gains; gains B) gains; loses C) loses; gains D) loses; loses ANSWER D
Date: September 10th, 2020
A feature of Bitcoin, a new type of electronic money, that make it attractive as a medium of exchange is A) anonymous transactions. B) volatility of value. C) heavy regulations by the central bank. D) wide acceptance by businesses. ANSWER A
Date: September 10th, 2020
Over time Americans have chosen to cook less at home and dine out more. This change in behavior: A) increases GDP. B) reduces GDP. C) does not affect GDP. D) none of the above ANSWER A
Date: September 10th, 2020
