A U.S. importer purchases 5,000 British pounds for $10,000. The rate of exchange is
A. $1 = 1.
B. $1 = 2.
C. $1 = .5.
D. $2 = 1.
B. $1 = 2.
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The table above lists the market shares of the twenty makers of personal computers. Based upon the Herfindahl-Hirschman Index for this industry, the Justice Department would
A) regard the industry as highly concentrated. B) be against any two firms merging. C) consider the market oligopolistic. D) regard the industry as competitive.
In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement ________ the demand of reserves and causes the federal funds interest rate to
________, everything else held constant. A) decreases; fall B) increases; fall C) increases; rise D) decreases; rise
The labor-force participation rate measures the percentage of the adult population currently in the labor force
a. True b. False Indicate whether the statement is true or false
One of Keynes’ most profound insights was that
a) markets allocate resources efficiently, as if by an invisible hand b) comparative advantage allows all nations to gain from trade c) capitalists exploit workers by paying them less than the total value of what they produce d) the same factor that drives long run growth—technological change—also causes business cycles e) the economy can achieve an equilibrium below its capacity