If the Fed wished to decrease interest rates, it could:
A. increase the reserve requirement or conduct an open market sale.
B. increase the reserve requirement or conduct an open market purchase.
C. decrease the reserve requirement or conduct an open market sale.
D. decrease the reserve requirement or conduct an open market purchase.
Answer: D
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In an auction where the bidders values are $400, $500, $650, $800 and $850, the highest two bidders form a bid-rigging cartel. What would have the winning bid been if there was no cartel?
a. $501 b. $651 c. $801 d. $846
Give three explanations for the law of demand:
Please provide the best answer for the statement.
Skateboards are produced according to the production function, q = 10K0.25L0.5 - L. At what quantity of labor does total product begin to decline given that capital is fixed at 16 units in the short-run?
A) L = 100 B) L = 10 C) L = 5 D) Not enough information is given.
A profit-maximizing firm will:
A. expand employment if marginal revenue product equals marginal resource cost. B. reduce employment if marginal revenue product equals marginal resource cost. C. reduce employment if marginal revenue product is less than marginal resource cost. D. expand employment if marginal revenue product is less than marginal resource cost.