A primary function of a central bank is to
A) regulate dividend payments by corporations.
B) act as a regulator of banks.
C) control the bond market.
D) publish statistics on banking and related financial matters.`
Ans: B) act as a regulator of banks.
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Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce only coffee and sugar. In Chile, either 5 units of coffee or 2 units of sugar can be produced in one day. In Brazil, a day of labor produces either 2 units of coffee or 1 unit of sugar. Calculate the opportunity cost of producing sugar in Brazil
a. Half a pound of coffee b. 4 pounds of coffee c. 1 pound of coffee d. 2 pounds of coffee e. One and a half pounds of coffee
You have noticed that there is a persistent shortage of teachers in an inner-city school district in your state. Based on this observation, you suspect that:
A. the wage for teachers in that district is lower than the equilibrium wage. B. the demand for teachers in the inner-city school district is too low. C. there is an excess supply of teachers in other districts. D. the wage for teachers in that district is higher than the wage in other districts.