The typical shape for a yield curve is A) gently upward sloping. B) mound shaped. C) flat. D) bowl shaped. ANSWER A
Date: September 10th, 2020
Suppose an apartment complex is converted to an owner occupied condominium. Suppose that the estimated value of the condominium owners’ housing services is now the same as their former rent. A) GDP increases. B) GDP decreases. C) GDP is unaffected because neither the rent nor the estimate of the value of housing services is included […]
Date: September 10th, 2020
Perfectly competitive firms are referred to as price takers because the individual firm is so small relative to the market that its output decisions will not have any effect on the market-determined price. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The measure of the aggregate price level that is most frequently reported in the media is the A) GDP deflator. B) producer price index. C) consumer price index. D) household price index. ANSWER C
Date: September 10th, 2020
The payments to the factors of production are: A) wages. B) rent. C) rent and interest. D) wages, rent, interest, and profits. ANSWER D
Date: September 10th, 2020
In the money market, an excess demand of money will: A) increase the supply of bonds, increase bond prices, and decrease interest rates. B) increase the supply of bonds, decrease bond prices, and decrease interest rates. C) increase the supply of bonds, increase bonds prices, and increase interest rates. D) increase the supply of bonds, […]
Date: September 10th, 2020
Firms that are designated as systemically important financial institutions (SIFIs) are subject to all of the following additional Federal Reserve regulations EXCEPT A) higher capital standards. B) stricter liquidity requirements. C) providing a plan for orderly liquidation if necessary. D) interest rate ceilings on time deposits. ANSWER D
Date: September 10th, 2020
In explaining the evolution of money A) government regulation is the most important factor. B) commodity money, because it is valued more highly, tends to drive out paper money. C) new forms of money evolve to lower transaction costs. D) paper money is always backed by gold and therefore more desirable than checks. ANSWER […]
Date: September 10th, 2020
The main difference between the short run and the long run is that: A) in the short run all inputs are fixed, while in the long run all inputs are variable. B) in the short run the firm varies all of its inputs to find the least-cost combination of inputs. C) in the short run, […]
Date: September 10th, 2020
Assume a factory that currently employs 25 workers is considering adding another 5 workers to its payroll. 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 decision. ANSWER A
Date: September 10th, 2020
