Resources are directed from one industry to another by
A. Market failure.
B. Government failure.
C. Changes in market prices.
D. None of the choices are correct.
Answer: C
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The Fed does not tightly control the monetary base because it does NOT completely control
A) open market purchases. B) open market sales. C) borrowed reserves. D) the discount rate.
Figure 30-3. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes.
All else constant, a decrease in the supply of money will lead to
A) an increase in the equilibrium quantity of money and an increase in the equilibrium price of bonds. B) an increase in the equilibrium quantity of money and a decrease in the equilibrium price of bonds. C) a decrease in the equilibrium quantity of money and an increase in the equilibrium price of bonds. D) a decrease in the equilibrium quantity of money and a decrease in the equilibrium price of bonds
Table 10.1Refer to Table 10.1, which shows the relationship between the price that Gladys charges for a product and the quantity of that product that Gladys sells. The marginal revenue that Gladys receives from selling the fifth unit of output is:
A. $5, because that is the price per unit of output that Gladys receives. B. $5, because that is the quantity that Gladys sells. C. $25, because Gladys sells five unit of output at a price of $5. D. $1, because Gladys earns $1 more in revenue by increasing her output to five units from four units.