As the payments system evolves from barter to a monetary system, A) commodity money is likely to precede the use of paper currency. B) transaction costs increase. C) the number of prices that need to be calculated increase rather dramatically. D) specialization decreases. ANSWER A
Date: September 10th, 2020
An increased supply of U.S. dollars on the foreign exchange market, all else equal, will result in an appreciation of the U.S. dollar. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Refer to Scenario 2. If the age of a house is 25 years with 1,500 square feet, what is the estimated market value of the house? What will be an ideal response? ANSWER Market Value = 47331.38 – 825.161(25 ) + 40.91107(1,500 ) = $88,068.96
Date: September 10th, 2020
The text describes three different “degrees” of price discrimination. Of these, which one is theoretically capable of generating the greatest amount of economic profit for the firm? Why? In contrast, which one do you think has the greatest applicability to the range of goods and services consumers typically purchase? ANSWER Because its goal is […]
Date: September 10th, 2020
The interest rate that commercial banks charge each other for loans of reserves to meet their minimum reserve requirements is called: A) treasury bill rate. B) federal funds rate. C) prime interest rate. D) none of the above. ANSWER B
Date: September 10th, 2020
Bank ________ is/are listed on the liability side of the bank’s balance sheet. A) reserves B) capital C) securities D) cash items ANSWER B
Date: September 10th, 2020
Industry X, which is perfectly competitive, is in long-run equilibrium. Assume a new law is passed that requires employers in industry X to provide health insurance to previously uninsured employees. As a result of this new requirement we would expect to observe: A) a decrease in price and an increase in total output in industry […]
Date: September 10th, 2020
The payments system is A) the method of conducting transactions in the economy. B) used by union officials to set salary caps. C) an illegal method of rewarding contracts. D) used by your employer to determine salary increases. ANSWER A
Date: September 10th, 2020
The political stability of countries has an impact on the foreign exchange market. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Assume that there is an improvement in the technology used by firms in a perfectly competitive industry that is initially in long-run equilibrium. In the short run this would cause: A) an increase in the firm’s economic profit. B) a decrease in the firm’s economic profit. C) no change in the firm’s economic profit. D) […]
Date: September 10th, 2020
