If the Federal Reserve wants to increase the availability of money and credit, it can
a. lower the discount rate.
b. raise the reserve requirements.
c. sell government bonds to the public.
d. encourage banks to increase their prime lending rate.
A
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Real wages increased in industrialized countries in the twentieth century because the demand for labor:
A. increased more slowly than the supply of labor increased. B. decreased, while the supply of labor increased. C. increased more rapidly than the supply of labor increased. D. increased, while the supply of labor decreased.
The marginal rate of substitution is the
A) rate at which the consumer can exchange one good for the other.
B) change in the quantity of one good that just offsets a one-unit change in the consumption of another good such that the total satisfaction remains constant.
C) change in the quantity of one good that changes the utility received by one unit.
D) same thing as the marginal utility of a good.
Rodolfo gets 1 util from regular potato chips, 4 utils from salt-and-vinegar chips, and 6 utils from barbeque-flavored chips. If regular potato chips cost $3.00, which of the following pricing structures represents consumer equilibrium?
a. salt-and-vinegar: $3.00; barbeque: $3.00 b. salt-and-vinegar: $4.00; barbeque: $6.00 c. salt-and-vinegar: $6.00; barbeque: $8.00 d. salt-and-vinegar: $12.00; barbeque: $18.00
Which of the following factors could lead to an upward movement along the demand curve as indicated by the arrow?
i. an increase in the U.S. interest rate ii. a decrease in the U.S. interest rate iii. an increase in the expected future U.S. exchange rate. A) i only B) ii only C) i and iii D) ii and iii E) None of the factors could lead to the upward movement illustrated by the arrow. The figure above shows demand curves for dollars in the foreign exchange market.