Ceteris paribus, if the Fed sells bonds through open market operations, the money
A. Demand curve should shift rightward.
B. Supply curve should shift leftward.
C. Supply curve should shift rightward.
D. Demand curve should shift leftward.
Answer: B
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A production possibilities frontier with a ________ shape indicates increasing opportunity costs as more and more of one good is produced
A) linear B) bowed outward C) bowed inward D) perfectly horizontal
When two countries trade with one another, it is most likely because...
a. the wealthy people in each of the two countries are able to benefit, through trade, by taking When two countries trade with one another, it is most likely because advantage of other people who are poor. b. some people involved in the trade do not understand that one of the two countries will become worse-off because of the trade. c. the opportunity costs of producing various goods are identical for the two countries. d. the two countries wish to take advantage of the principle of comparative advantage.
A portfolio of assets has lower risk than holding one asset, but the same expected return and higher transaction costs. Which of the following statements is most correct?
A. The portfolio is attractive to investors who are risk seekers. B. The portfolio is not attractive to investors who are risk-neutral. C. The portfolio is attractive to people who are risk-averse and risk-neutral, but not to risk seekers. D. The portfolio is attractive to investors who are risk-neutral.
When a firm sells a given product at more than one price and the price difference is NOT caused by differences in cost then there is
A. price delineation. B. price discrimination. C. price demarcation. D. price differentiation.