Typically, increasing the difference between the discount and federal funds rates causes
A. high corporate profits.
B. no change in interest rates.
C. a boom in the economy.
D. an increase in market interest rates.
Answer: D
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The natural rate of unemployment is not zero. It is at least 5 percent, allowing for individuals who are frictionally and structurally unemployed
Indicate whether the statement is true or false
Gooey Flakes is the only ready-to-eat cereal that has chocolate syrup injected into each flake. The machine that injects the syrup into the flakes can do nothing else. Which of the following is true?
a. All of the machine's earnings are economic rent. b. All of the machine's earnings are opportunity cost. c. The supply curve for this machine is horizontal. d. The demand curve for this machine is horizontal. e. The demand curve for this machine is vertical.
Most economists' disagreements are a result of:
A) factual considerations. B) positive economics. C) the scientific method. D) normative considerations.
There is a surplus in a market for a product when:
a. The increase in demand is greater than the decrease in supply b. Quantity supplied is less than quantity demanded c. Quantity demanded is less than quantity supplied d. The decrease in supply is greater than the increase in demand