The costs of the use of a resource for the production of one good rather than another are
a. Economic costs
b. Fixed costs
c. Historical costs
d. Opportunity costs
What increases when U.S. commercial banks increase net deposits?
a. Purchasing power of the U.S. dollar
b. Real U.S. national income
c. Real wealth of the U.S.
d. U.S. money supply
Carlton Bank has an increase in reserves of $1,000,000. If the reserve ratio is 10%, by what amount may Carlton increase its demand deposits?
a. $ 100,000
b. $ 900,000
c. $ 1,000,000
d. $ 10,000,000
Keynesian economic theory holds that during the peak of the business cycle, the normal workings of the labor market result in
a. Cyclical unemployment
b. Frictional unemployment
c. Phillips unemployment
d. No unemployment
What factor would tend to cause a nation's currency to appreciate in a foreign exchange market with freely fluctuating exchange rates?
a. Relatively high domestic real interest rates
b. Relatively high domestic inflation
c. Increased environmental protection measures resulting in higher prices on goods for export
d. Increased demand for imports
Which of the following products are not complementary goods?
a. Cars and tires
b. Chips and dip
c. Lamps and light bulbs
d. Video tapes and DVDs
What is the effect on the market price when both the supply and demand for a good increase?
a. Decrease only with inelastic demand
b. Decrease only with inelastic supply
c. Increase only with inelastic demand
d. Indeterminate from the given information
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