The interest rate banks charge each other to borrow excess reserves is called the:
A. federal funds rate.
B. discount rate.
C. prime rate.
D. required reserve ratio.
Answer: A
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How is the market supply curve found? In what ways is the process similar to the way the market demand curve is determined? In what ways are they different?
What will be an ideal response?
Water subsidies to irrigators
a. Tend to increase economic efficiency b. Tend to internalize externalities c. Tend to increase water prices d. Tend to increase the quantity of water used e. Tend to promote water conservation
There are many different models of oligopoly because:
A. firms do not maximize profits in oligopolistic competition. B. beliefs play an important role in oligopolistic competition. C. oligopoly is the most complicated type of market structure. D. beliefs play an important role in oligopolistic competition and oligopoly is the most complicated type of market structure.
Refer to the information provided in Figure 7.11 below to answer the question(s) that follow. 
Figure 7.11
Refer to Figure 7.11. If the isocost line represents a total cost of $7,200, the firm's cost of capital is ________ per unit and its cost of labor is ________ per unit.
A. $36; $72 B. $144; $72 C. $72; $36 D. $200; $100