33.Which of the following is a role of the Bank of Canada? Managing the money supply Increasing or decreasing government spending Establishing fiscal budgets Granting loans to consumers 34.Fiscal policy refers to: Changes in taxes and government purchases made by legislation for the purpose of
Solve questions 33-37 only, thank u!
28 If a legal ceiling
- a shortage of the product will occur
- a surplus of the product will occur
- an underground market will evolve
- neither the equilibrium price nor
equilibrium quantity will
be affected
- 29. To economists, the main difference between "the
short run" and "the long run" is that:
- the law of diminishing marginal returns applies in the
long run but not in the short run
- in the long run, all resources are variable while in the
short run, at least one resource is fixed
- fixed costs are more important to decision making in
the long run than they are in the short run
- in the short run all resources are fixed, while in the
long run all resources are variable
- 30.A surplus of product will occur when price is:
- above equilibrium with the result that quantity
demanded exceeds quantity supplied
- above equilibrium with the result that quantity
supplied exceeds quantity demanded
- below equilibrium with the result that quantity
demanded exceeds quantity supplied
- below equilibrium with the result that quantity
supplied exceeds quantity demanded
- 31.Which of the following would decrease
aggregate demand and shift the AD curve to the
left?
- a decline in personal income tax rates
- a decline in consumer spending
- a higher level of government purchases
- a fall in interest rates
- 32.Which of the following is an implicit cost to the
Johnston Manufacturing Company?
- payments of wages to its office workers
- property taxes
- rent paid for the use of equipment owned by the
Schultz Machinery Company
- returns that the shareholders could have received if
they had not bought shares in the Johnson
Manufacturing Company
- 33.Which of the following is a role of the Bank of
Canada?
- Managing the money supply
- Increasing or decreasing government spending
- Establishing fiscal budgets
- Granting loans to consumers
- 34.Fiscal policy refers to:
- Changes in taxes and government purchases made by
legislation for the purpose of stabilizing the economy
- The authority that the prime minister has to change
personal income tax rates
- Changes in government purchases or taxes that have the
effect of destabilizing the economy
- Changes in the money supply and interest rates by the
Bank of Canada5
- 35.If real income, employment, and investment
are rising, the economy is:
- At the phase called the peak
- In a period of expansion
- In a phase called a recession
- In a trough
- 36.A fractional reserve banking system is one in
which banks within the system:
- Can lend out all of their reserves
- Keep all of their reserves
- Can lend out only a fraction of their reserves
- Pay higher rates of interest to depositors than
they charge to borrowers.
- 37.An industry composed of three firms, each of
which considers the potential reactions of its rivals in
making pricing decisions, yet is not concerned with the
potential entry of other firms, can best be described
as:
perfect competition - a
monopoly - an oligopoly
monopolistic competition
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