The actions that the Federal Reserve takes to ________ to pursue macroeconomic policy objectives refer to monetary policy
A) manage the money supply and interest rates
B) set tax rates
C) regulate imports and exports
D) establish exchange rates
A
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During a recession, unemployment compensation payments increase without the need for any government action. This increase is an example of
A) discretionary monetary policy. B) automatic monetary policy. C) automatic fiscal policy. D) discretionary fiscal policy. E) government expenditure, but it is not an example of either discretionary or automatic policy.
A food company trying to increase its profits by expanding in to the soft drinks business is an example of
a. Economies of scale b. Economies of Scope c. Diseconomies of Scale d. Diseconomies of Scope
Which of the following would shift the supply of Green Bay Packers football jerseys to the left?
a. The Green Bay Packers make it to the Super Bowl. b. The price of the jerseys increases by $15. c. The technology of sewing machines use to make the jerseys improves. d. The cost of the fabric used to make the jerseys increases.
Upon learning that his auto transmission is about to fail, Ray Roma sells his car to an unsuspecting buyer. This circumstance illustrates the:
A. adverse selection problem. B. free-rider problem. C. moral hazard problem. D. principal-agent problem.