Federal funds rate targets and reserve targets are incompatible when the Federal Reserve wants to
A) expand reserves and lower interest rates.
B) expand reserves and raise interest rates.
C) contract reserves and the money supply.
D) contract reserves and raise interest rates.
B
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Which of the following is characteristics is common to both monopoly and monopolistic competition?
A) Ease of entry into the industry. B) Firms are price setters. C) A relatively large number of sellers. D) Long-run economic profit equals 0.
In a market where the price is restricted by price floors or price ceilings,
a. all sellers will be able to sell everything they produce. b. surpluses and shortages will exist. c. all buyers will get what they want. d. disequilibrium will automatically correct itself. e. surpluses and shortages will put pressure on the price to move to its equilibrium.
You and your friend go out shopping for television sets for your respective apartments. You find the one you want to buy and pay extra money to have it delivered during the weekend. Your friend is unwilling to pay extra and will wait for the television to be delivered as per the store's usual practice. Which of the following conclusions can be drawn from this information?
a. You have a higher price elasticity of demand for the TV than your friend. b. Your opportunity cost of time is higher and than your friend's. c. Your friend's opportunity cost of time is higher than your's. d. Both of you have the same price elasticity of demand for the TV.
The owner of each share of a corporation's stock:
a. has the right to cast one vote for electing its board of directors. b. is entitled to 1 percent of the total profit earned by the firm. c. has the right to participate in its overall supervision. d. is liable for 1 percent of the total loss incurred by the company.