If the Fed wants to fight recession, it will ________ the federal funds rate in order to ________
A) lower; increase aggregate demand
B) raise; increase aggregate supply
C) lower; increase aggregate supply
D) raise; decrease aggregate supply
E) raise; increase aggregate demand
A
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A) Sam pays $600 for 30 days of guitar classes. He attends an hour-long class every day. If, instead of attending class, he works at a part-time job, he would be paid $5 an hour. Or, he could work at a fast-food outlet and earn $9 per hour
Once he has already paid a nonrefundable fee of $600 to enroll in the class, what is his opportunity cost of attending each hour of class? b) Suppose workers decide to work more and consume less leisure when their hourly wage rate increases. What could explain this behavior?
The above figure shows a housing market with a rent ceiling equal to $1,000. In this figure, what area is equal to the deadweight loss?
A) area A B) area B C) area C D) area D E) area E
The WTO seems at times to be interfering in domestic policy since
A) the line between domestic policies and de factor protectionism is often fuzzy. B) it is a supra-national organization with the power to overturn governments. C) it determines which nations may trade what with whom. D) it punishes naughty nations. E) it exempts the U.S. and other powerful member nations from many of its edicts.
Gabby flips a fair coin and it shows heads. When trying to guess what the coin will show on the next flip, Gabby guesses heads because she thinks it is more likely to occur than tails since the coin showed heads on the last flip. Gabby suffers from the:
A. gambler's fallacy. B. gambler's myth. C. hot-hand fallacy. D. hot potato fallacy.