The federal funds rate is the interest rate:
A. the FDIC charges banks that need to borrow from it to meet depositor demands.
B. banks charge each other for overnight loans on excess reserves held at the Fed.
C. the Fed charges banks who borrow from it.
D. the U.S. Treasury charges banks that need emergency funds.
Answer: B
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The above figures show the market for hamburger meat. Which figure(s) shows the effect of a decrease in the price of a hamburger complement such as hamburger buns?
A) Figure A B) Figure B C) Figure D D) Figures A and B
The magnitude of the slope of an indifference curve is the marginal
A) rate of substitution. B) rate of relative prices. C) utility of substitution. D) rate of utility of income.
In their study of the effect of legalized abortion on crime rates, Steven Levitt and John Donohue applied
A. positive economic analysis. B. normative economic analysis. C. the principle of individual sovereignty. D. value judgments.
Which of the following will be an obstacle to oligopolistic collusion in a market?
a. government regulations restricting entry b. a relatively small number of oligopolistic firms c. unstable demand conditions d. uniform products