Which action could the Fed use to decrease the money supply?
A) a tax increase B) a decrease in the discount rate
C) an increase in the required reserve ratio D) an open market purchase
C
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The above (incomplete) table provides information about the relationships between output and various cost measures. The total cost (TC) of producing 9 units of output is
A) $180. B) $190. C) $20. D) None of the above answers is correct.
Suppose a consumer only purchases food and clothing, and food is plotted along the horizontal axis of the consumer's indifference map. If the price of food and clothing increase and income does not change, then the budget line changes by rotating:
A) counter-clockwise about the fixed vertical axis intercept. B) clockwise about the fixed vertical axis intercept. C) counter-clockwise about the fixed horizontal axis intercept. D) clockwise about the fixed horizontal axis intercept. E) none of the above
The study of how society manages its scarce resources is most closely associated with which field of study?
a. environmental studies b. economics c. management d. accounting
Behavioral economic theories are developed based on the following, except:
A. Assuming that people always make rational decisions and choices B. Observing people's actual behavior, including irrational behavior C. Trying to explain people's tendency to make systematic errors in certain situations D. Dropping the neoclassical assumption that people are fundamentally rational