Microeconomics is the study of aggregate behavior in the economy.
Answer the following statement true (T) or false (F)
False
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In the presence of a negative externality generated by producing a good, a competitive market will produce more of that good than is socially optimal
What will be an ideal response?
The federal funds rate is the interest rate
a. the Federal Reserve charges for loans it makes to the federal government. b. the Federal Reserve charges banks for short-term loans. c. banks charge each other for short-term loans of reserves. d. on newly issued one-year Treasury bonds.
Ray's company just announced that everyone will be getting their pay cut by 5% in order to avoid having to close down. Ray's demand for coffee, a normal good, will likely:
A. decrease, and his demand curve will shift to the left. B. increase, and his demand curve will shift to the right. C. increase, and his demand curve will shift to the left. D. decrease, and his demand curve will shift to the right.
When a firm builds a new factory, this is an example of an investment in
A. the market. B. physical capital. C. research and development. D. human capital.