Open-market operations have their initial effect on bank
A. lending.
B. reserves.
C. profits.
D. revenues.
Answer: B
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Some consumer electronics products such as plasma TVs, DVD players, and digital cameras, are introduced at very high prices but over time, their prices start falling (beyond what could be attributed to falling costs as companies take advantage of
economies of scale and cheaper technologies). Which of the following is the best explanation for this observation? A) Early adopters of these new products typically have a higher demand and higher income compared to those who are willing to wait. B) More firms are likely to enter the consumer electronics market over time, forcing market prices down. C) Early adopters are more quality conscious and are willing to pay higher prices for the initial production of these goods. D) After satisfying the demand for early adopters, firms lower price to attract the more price-sensitive consumers.
The initial Phillips curve relationship implied that the opportunity cost of _____ was higher _____
a. reducing unemployment; inflation b. increasing unemployment; inflation c. decreasing employment; interest rate d. increasing employment; deflation e. increasing employment; interest rate
An example of a way employers can minimize moral hazard is to:
A. monitor employees' computer activity. B. videotape the workplace. C. offer bonuses for consistent productivity. D. All of these are ways to minimize moral hazard.
?19742015Minimum wage per hour$ 2.00$ 7.25Weekly income from minimum wage$80.00$290.00Cost of a standard basket of goods$47.00$236Number of baskets per week1.701.23
Use Table 2.5 above to answer the question. What happened to the real value of the minimum wage between 1974 and 2015?
A. It remained the same. B. It increased. C. It decreased. D. It could not be determined from the given information.