When the Fed's chairman, Alan Greenspan, expresses his concern about economic conditions and warns about possible economic problems, he is using
a. one of the most effective tools of monetary policy
b. or rather misusing his position because Fed members should not express personal views on policy
c. the media to set his policies against the government's, otherwise he would not have gone public with them
d. the media to demonstrate that the Fed and government are planning consistent monetary and fiscal policies
e. moral suasion
E
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Vertically integrated firms can use transfer pricing
A) to avoid government price controls. B) as a way to compensate managers for transferring among departments in a vertically integrated firm. C) to avoid paying market prices for inputs. D) to shift profit.
Payments to Social Security recipients would decline if the retirement age were lowered.
Answer the following statement true (T) or false (F)
When the demand for a good or service limits the quantity that can be sold to an output at which the firm experiences economies of scale,
A. firm is a single-price monopoly B. firm is well protected from competition by a legal barrier C. the firm is a natural monopoly D. there are close substitutes for the good the firm produces
Explain how importing bed linens can be beneficial to the domestic economy.
What will be an ideal response?