Which of the following statements is true with regard to the Fed's response to the economic crisis of 2008?
a. Although the Fed lowered its interest rates to nearly zero, there are other actions it can take to improve the economy.
b. Because the Fed lowered its interest rates to nearly zero, there are no other actions it can take to improve the economy.
c. Since the Fed did not lower its interest rates to near zero, there are still other actions it can take to improve the economy.
d. none of the above
a
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If the total cost of producing one unit of the output is $100 and the marginal cost of that unit is $20, the average fixed cost of producing two units of output is ________
Fill in the blank(s) with correct word
If an industry currently dominated by three large producers whose revenues represent 30%, 30%, and 30% of the market's total revenues, with the remaining two firms each representing 5%, then one of the large firms merged with one of the small ones, what would be the new four firm concentration ratio and the new Herfindahl-Hirschman Index for this industry?
a. 100%; 3,050 b. 100%; 2,750 c. 95%; 3,050 d. 95% 2,750
According to the theory of rational expectations, errors in predicting inflation will
a. be biased upward more often than not. b. be purely random. c. tend to be biased downward when inflation is rising, and tend to be biased upward when inflation is falling. d. tend to be biased upward when inflation is rising, and tend to be biased downward when inflation is falling.
Which of the following events would cause the price of oranges to fall?
a. There is a shortage of oranges. b. The FDA announces that bananas cause strokes, and oranges and bananas are substitutes. c. The price of land throughout Florida decreases, and Florida produces a significant proportion of the nation's oranges. d. All of the above are correct.