What does "lender of last resort" mean with respect to the Federal Reserve?
(A) It will lend money to a bank in a financial emergency.
(B) It has the power to decide how much money a bank can lend out.
(C) It decides interest rates for interbank loans.
(D) It makes decisions about who a bank can lend money to.
Ans: It will lend money to a bank in a financial emergency.
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Pete is a non-union employee at The Electric Co The majority of the employees at The Electric Co are unionized. The union at The Electric Co has negotiated very good benefits. Even though he is not a union member and he does not have to pay union dues, Pete receives all the benefits that the union has negotiated. Pete's behavior is an example of
a. rivalry. b. a barrier to entry. c. free riding. d. Taft-Hartley opposition.
Goods known as substitutes increase the use of another good.
a. true b. false
When operating at the profit-maximizing/loss-minimizing level of output, total revenue minus total cost is a little under
A. $200.
B. $100.
C. $45.
D. -$45.
Which of the following will shift an economy's production possibilities curve inward?
A. an improvement in technology B. an increase in the unemployment rate C. a decrease in land, labor or capital D. a decrease in the unemployment rate