If the Fed adopts a policy of pegging the interest rate, a ________ in government spending forces the Fed to increase the money supply to prevent interest rates from ________
A) fall; increasing
B) fall; decreasing
C) rise; decreasing
D) rise; increasing
D
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Under a system of laissez-faire, output selection is determined by consumers’ wants.
Answer the following statement true (T) or false (F)
Refer to Exhibit 1-1. If the student whose study habits are illustrated here is currently studying for the 2nd hour she should
A) cut back on the number of hours she is studying because the marginal benefit of studying for the 2nd hour is less than the marginal cost of doing so. B) cut back on the number of hours she is studying because the marginal benefit of studying for the 2nd hour is greater than the marginal cost of doing so. C) increase the number of hours she is studying because the marginal benefit of studying for the 2nd hour is less than the marginal cost of doing so. D) increase the number of hours she is studying because the marginal benefit of studying for the 2ndhour is greater than the marginal cost of doing so.
When deciding whether to buy a second car, marginal analysis indicates that the purchaser should compare the:
A. benefits expected from two cars with the cost of both. B. additional benefits expected from a second car with the cost of the two cars. C. dollar cost of the two cars with the potential income that the cars will generate. D. additional benefits of the second car with the additional cost of the second car.
A market in which there were many producers with no control over price could be characterized as _______________.
Fill in the blank(s) with the appropriate word(s).