An open market sale of securities by the central bank to banks usually will:
A. induce the banks to make more loans since their revenue will decrease if they do nothing.
B. diminish the inclination of banks to make loans.
C. increase the banks' willingness and ability to make loans.
D. increase the amount of deposits in the banking system.
Answer: B
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Which of the following statements is TRUE?
A) As a result of specialization some workers will be displaced and harmed in the short run by free trade. B) Free trade leads to lower wages for all workers in both nations. C) Specialization will result in a decline in an industry and none of those workers will be able to find other jobs. D) Free trade will benefit all workers in a nation equally.
In economics, all of the following is counted as "capital" except
A) factory buildings. B) warehouses. C) money. D) machine tools.
Table 30.1Number of workers (per hour)Total output (per hour)Marginal physical product (output per worker)Total revenue (dollars per hour)Marginal revenue product (dollars per hour worker)14---________---210________________________315________________________419________________________522________________________Assume that the product price is $4 per unit and that the hourly wage for workers is $12. Neither price nor wage changes with output. In Table 30.1, how many workers should be hired?
A. 3. B. 2. C. 4. D. 5.
When Thurston catches 10 fish a day, he can gather a maximum of 40 coconuts, and when he catches 20 fish a day, he can gather a maximum of 30 coconuts. If Thurston's opportunity cost of producing each good increases as he produces more of it, and he decides to catch 30 fish a day, then the maximum number of coconuts he can gather must be:
A. equal to 20. B. less than 20. C. greater than 20. D. greater than 10.