The study of the choices made by individuals is part of the definition of
A) microeconomics.
B) positive economics.
C) macroeconomics.
D) normative economics.
A
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To be effective, an import quota must
a. reduce the price and increase the quantity of imports b. set the price of the imported good higher than the domestic equilibrium price c. restrict imports to less than would be imported under free trade d. restrict imports to less than exports in trade with that particular country e. be directed at the product of a specific country
If the Fed wants to decrease the money supply, it can:
A. Increase the money multiplier. B. Decrease the discount rate. C. Sell government bonds. D. Decrease the minimum reserve ratio.
Reserves are
a. the central bank of the U.S. b. deposits that banks hold in excess of the required amount. c. the purchase of bonds by the Federal Open Market Committee. d. deposits that banks have received but have not yet loaned out.
Taylor's marginal utility from watching movies and from eating out (in utils) is shown in the accompanying table. Taylor spends exactly $100 every month on these two forms of entertainment; the price of each movie is $10 and the price of each dinner is $20.MoviesPer MonthMarginal UtilityPer MovieDinners OutPer MonthMarginal UtilityPer Dinner160115025021403203120454100 Taylor's optimal combination of movies and eating out is:
A. 3 movies and 3 dinners. B. 4 movies and 3 dinners. C. 2 movies and 4 dinners. D. 3 movies and 4 dinners.