The term "open market operations" refers to the:
A. loan-making activities of commercial banks.
B. effect of expansionary monetary policy on interest rates.
C. operation of competitive markets in the banking industry as the result of deregulation.
D. buying and selling of government securities by the Federal Reserve.
Answer: D
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Marginal revenue product for labor for any type of firm is
a. the additional revenue that a firm earns when it employs one more unit of labor. b. the additional revenue that a firm earns when it produces one more unit of output. c. the additional cost of employing one more unit of output. d. the difference between the revenue from employing one more unit of labor and the wage rate.
A main argument for investing in US securities is the:
A. high rate of interest. B. low rate of interest C. low risk of owning them. D. varied time frame of payment for different types of securities.
Governments choose to pursue industrial policy to:
A. raise tax revenue. B. spur economic growth. C. create publicly owned companies. D. regulate the growth of certain industries.
According to economists who emphasize the connection between productive contribution and economic reward, a more equal income distribution
a. is instrumental to economic growth b. always helps the poor in the long run c. is at the heart of the ethics underlying competitive markets d. creates inefficiency e. may create a bigger GDP, but the individual shares of the GDP are smaller