The federal funds rate is the interest rate charged when
A. The Fed lends to individuals.
B. One bank lends reserves to another bank.
C. Individual banks lend to the Fed.
D. The Fed lends to banks.
Answer: B
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The key characteristic of an oligopolistic market is:
A) production of a homogeneous product. B) mutual interdependence among firms in the market. C) the absence of market power by any one firm. D) ease of entry into, and exit out of, the market.
In a perfectly competitive market the long-run demand and supply curves are Q = 12 - P and Q = 5P respectively. Producer surplus in this market equals
A) 0. B) 5. C) 10. D) It cannot be determined without more information.
Today, people changed their expectations about the future. This change
a. can cause a movement along a demand curve. b. can affect future demand but not today's demand. c. can affect today's demand. d. cannot affect either today's demand or future demand.
Which statement about public assistance is false?
A. It is aimed solely at the poor. B. It has failed completely. C. It has not ended poverty. D. It has fostered a permanent underclass.