A new tool that the Fed started using in late 2008 was that it began to pay interest on the reserves banks hold in their federal reserve accounts
a. True
b. False
A
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Consumers are willing to purchase a product up to the point where
A) the marginal benefit of consuming the product equals the area below the supply curve and above the market price. B) the marginal benefit of consuming a product is equal to its price. C) the marginal benefit of consuming the product is equal to the marginal cost of consuming it. D) the consumer surplus is equal to the producer surplus.
How have the recent increases in the price of gasoline affected the market for hybrid cars?
A. The demand has increased, increasing the equilibrium price and quantity of hybrid cars. B. The supply has increased, decreasing the equilibrium price and increasing the equilibrium quantity of hybrid cars. C. The demand has increased, decreasing the equilibrium price and increasing the equilibrium quantity of hybrid cars. D. The demand and supply of hybrid cars have both increased in response to changing gas prices, so the equilibrium quantity has definitely decreased, but the effect on price cannot be determined without more information.
The labor force is made up of
A. all individuals who are employed. B. those who are employed plus those who are unemployed. C. the population of a nation, aged 16 years and above. D. all individuals who are working and those who are not working.
A consumer with a limited income will maximize utility when each good is purchased in amounts such that the
A. marginal utility of each good in a bundle is maximized. B. total utility is the same for each good in a bundle. C. marginal utility per dollar spent on each of the final choices in a bundle is equal. D. marginal utility per dollar spent on each of the final choices in a bundle is maximized for each good.