The main reason the United States established a central bank was
a. a desire for a strong centralized financial authority.
b. to follow the conclusions of economic theory.
c. severe inflation after the Civil War.
d. disastrous experiences with financial panics.
d
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Suppose labor is a variable input and capital is a fixed input, and consider a firm's short-run average, average variable, and marginal cost curves.
(i) What geometric relationships hold among these three curves? (ii) How would these curves be affected by an increase in the wage rate paid to labor? (iii) How would these three curves be affected by an increase in the rental rate paid to capital?
Provide a description of the TIT FOR TAT strategy. Give a brief explanation of the importance of TIT FOR TAT strategy in Robert Axelrod's computer tournaments and the implications of his results for public policy
What will be an ideal response?
When considering the demand for money, which two assets do we assume individuals can hold?
a. Stocks and bonds b. Money and stocks c. Money and bonds d. Checking accounts and savings accounts e. Money and real estate
If the United States government wants to eliminate an unfavorable balance of trade, it could
a. reduce tariffs b. encourage imports c. reduce quotas on imports d. depreciate the dollar e. increase taxes on exported goods