31) The required reserve ratio is 10 percent and Charlie deposits $3,000 in her checking account. The bank must A) increase reserves by $3,000. B) increase reserves by $300. C) decrease reserves by $3,000. D) decrease reserves by $300. E) not change its reserves until Charlie decides to withdraw her funds. Answer:  B Topic:  Fed policy tools, required reserve ratio Skill:  Level 2: […]

  31) Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to A) a decrease in the supply of electric cars so that the supply curve shifts leftward. B) a decrease in the supply of electric cars so that the supply curve shifts rightward. C) an increase in the supply of electric cars so […]

  31.An example of an element of external cultural that a culturally sensitive model of organizations should include is _____. a.the organization’s plans and policies b.the products and services produced by the organization c.the social class of managers and of workers (page 7, moderate) d.the size and profitability of the organization 32.In explaining organizational behavior, the text says that culture _____. a.is the only variable […]

      11) The table above shows a nation’s production possibilities frontier. If the nation wants to produce 4 robots and 34 pizzas, A) it will shift the production possibilities frontier. B) the opportunity cost is 9 pizzas. C) the nation will be producing inefficiently. D) it will be unable to do so because the production point is unattainable. E) the nation will then […]

      11) In the above table, for Mary the opportunity cost of producing a dress is ________ and the opportunity cost for Mark of producing a dress is ________. A) 1 1/2 jackets; 2/3 of a jacket B) 1 1/2 jackets; 2 1/2 jackets C) 1 1/4 jackets; 1/2 of a jacket D) 1 jacket; 1 jacket E) 1 dress; 1 dress   12) A […]

  14.4   The AD Curve and Equilibrium Expenditure 1) When the price level ________, equilibrium expenditure ________ and the quantity of real GDP demanded ________. A) falls; increases; increases B) rises; increases; decreases C) falls; increases; decreases D) rises; decreases; increases E) rises; increases; increases 2) The level of equilibrium expenditure at each price level determines A) the points on the AD curve. B) aggregate […]

  51) Rate of return regulation is designed to allow a natural monopoly to A) make an economic profit. B) make zero economic profit. C) underestimate its average cost. D) compete with any firm entering the market. E) make zero normal profit. 52) When a regulatory agency uses rate of return regulation, the A) agency is able to eliminate the deadweight loss. B) firm’s managers […]

  31) One of the possible roles governments can play in sponsoring growth is to A) provide tax incentives to encourage saving. B) own more of the nation’s resources in order to put them to use. C) close the nation to trade in order to protect its domestic producers. D) make decisions for its citizens as to the most suitable job. E) limit the use […]

  11) Agricultural price supports in the United States A) harm U.S. consumers, U.S. taxpayers, and foreign farmers and creates a deadweight loss. B) benefit U.S. taxpayers, U.S. farmers, and U.S. consumers. C) create gains to U.S. farmers that are at least as large as losses to U.S. consumers. D) decrease the deadweight loss and improve market efficiency. E) None of the above answers is […]

    31) If tomato growers in Florida lobby the U.S. government to impose an import quota on Mexican tomatoes, who gains from such a quota? A) Mexican growers B) U.S. consumers C) U.S. growers D) the U.S. government E) no one 32) If the United States imposes a tariff on foreign chocolate, how are foreign producers of chocolate affected? A) Their supply increases because […]