Suppose the Fed purchases Treasury securities. Interest rates in the United States will ________ and the U.S. dollar will ________ against foreign currencies
A) decrease; appreciate B) increase; depreciate
C) decrease; depreciate D) increase; appreciate
C
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Suppose the demand for peaches sold from one roadside stand in Georgia is perfectly elastic. As a result, a 7 percent increase in the price charged by the owner of this stand leads to
A) zero peaches sold by this stand. B) no change in the quantity demanded at this stand. C) a 7 percent decrease in the quantity demanded at this stand. D) a 7 percent decrease in demand at this stand. E) a virtually infinite increase in the quantity demanded at this stand.
In barometric price leadership, one firm announces a change in price
a. and the other firms follow b. but the other firms refuse to follow c. that it hopes will be accepted by others d. which is merely a test of the market e. none of the above.
Why do economists study sports teams when looking for evidence of labor-market discrimination?
a. because the salaries paid to professional athletes exhibit the superstar phenomenon, which is highly correlated with discrimination b. because all four United States professional sports leagues (football, basketball, hockey, and baseball) require discrimination studies every five years c. because nonwhites comprise a majority of starters for many professional sports teams d. because the wide availability of performance statistics allows economists to control for individual player productivity in ways that are difficult to do for other types of firms
The accompanying figure shows Avery's weekly production possibilities curve for scarves. 
Avery's PPC would shift outward if she:
A. devotes more time to knitting each week. B. devotes less time to knitting each week. C. knits more red scarves and fewer blue scarves each week. D. knits fewer red scarves and more blue scarves each week.