When a U.S. company shifts some of its production to Mexico, it is engaging in:
A. outsourcing.
B. insourcing.
C. self-sufficiency.
D. involuntary exchange.
Answer: A
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Which of the following is a tool the Federal Reserve System can use to regulate the quantity of money?
i. changing the discount rate ii. conducting open market operations iii. changing the required reserve ratio A) i only B) ii only C) i and ii D) ii and iii E) i, ii, and iii
Refer to Figure 3-6. The figure above represents the market for canvas tote bags. Assume that the market price is $35. Which of the following statements is true?
A) There is a surplus that will cause the price to decrease; quantity demanded will then increase and quantity supplied will decrease until the price equals $25. B) There is a surplus that will cause the price to increase; quantity demanded will then decrease and quantity supplied will increase until the price equals $25. C) There is a surplus that will cause the price to decrease; quantity supplied will then increase and quantity demanded will decrease until the price equals $25. D) There will be a surplus that will cause the price to decrease; demand will then increase and supply will decrease until the price equals $25.
Transfer payments represent income that is not earned but received by individuals
a. True b. False Indicate whether the statement is true or false
Ginger bought a phone that came with a $10 rebate. Ginger should fill out and mail in the rebate form if:
A. the opportunity cost of the time and trouble of sending in the rebate form is less than $10. B. Ginger's surplus from purchasing the phone was less than $10. C. she would have bought the phone without the rebate, and so sending in the rebate form involves no opportunity cost. D. the opportunity cost of the time and trouble of sending in the rebate form is more than $10.