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

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

Solve questions 33-37 only, thank u!

28 If a legal ceiling price is set below the equilibrium price:

  1. a shortage of the product will occur
  2. a surplus of the product will occur
  3. an underground market will evolve
  4. neither the equilibrium price nor equilibrium quantity will

be affected

  1. 29. To economists, the main difference between "the

short run" and "the long run" is that:

  1. the law of diminishing marginal returns applies in the

long run but not in the short run

  1. in the long run, all resources are variable while in the

short run, at least one resource is fixed

  1. fixed costs are more important to decision making in

the long run than they are in the short run

  1. in the short run all resources are fixed, while in the

long run all resources are variable

  1. 30.A surplus of product will occur when price is:
  2. above equilibrium with the result that quantity

demanded exceeds quantity supplied

  1. above equilibrium with the result that quantity

supplied exceeds quantity demanded

  1. below equilibrium with the result that quantity

demanded exceeds quantity supplied

  1. below equilibrium with the result that quantity

supplied exceeds quantity demanded

  1. 31.Which of the following would decrease

aggregate demand and shift the AD curve to the

left?

  1. a decline in personal income tax rates
  2. a decline in consumer spending
  3. a higher level of government purchases
  4. a fall in interest rates
  5. 32.Which of the following is an implicit cost to the

Johnston Manufacturing Company?

  1. payments of wages to its office workers
  2. property taxes
  3. rent paid for the use of equipment owned by the

Schultz Machinery Company

  1. returns that the shareholders could have received if

they had not bought shares in the Johnson

Manufacturing Company

  1. 33.Which of the following is a role of the Bank of

Canada?

  1. Managing the money supply
  2. Increasing or decreasing government spending
  3. Establishing fiscal budgets
  4. Granting loans to consumers
  5. 34.Fiscal policy refers to:
  6. Changes in taxes and government purchases made by

legislation for the purpose of stabilizing the economy

  1. The authority that the prime minister has to change

personal income tax rates

  1. Changes in government purchases or taxes that have the

effect of destabilizing the economy

  1. Changes in the money supply and interest rates by the

Bank of Canada5

  1. 35.If real income, employment, and investment

are rising, the economy is:

  1. At the phase called the peak
  2. In a period of expansion
  3. In a phase called a recession
  4. In a trough
  5. 36.A fractional reserve banking system is one in

which banks within the system:

  1. Can lend out all of their reserves
  2. Keep all of their reserves
  3. Can lend out only a fraction of their reserves
  4. Pay higher rates of interest to depositors than

they charge to borrowers.

  1. 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:

  1. perfect competition
  2. a monopoly
  3. an oligopoly
  4. monopolistic competition
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Short-run Supply Curve
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education