When the Fed decreases the money supply, the interest rate
a. rises
b. falls
c. remains unchanged
d. rises during recessions only, otherwise remains unchanged
e. falls during recessions only, otherwise remains unchanged
A
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The reversal of fortune is strong evidence against the:
A) religious hypothesis of economic prosperity. B) geography hypothesis of economic prosperity. C) culture hypothesis of economic prosperity. D) institutions hypothesis of economic prosperity.
_______________ —a term referring to the government practice of enacting laws to regulate prices instead of letting market forces determine prices.
a. Price ceiling b. Price floor c. Price control d. Subsidies
Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. Larry's opportunity cost of attending State NoName U is:
A. $60,000 B. $30,000 C. $15,000 D. $20,000
If a firm is a profit maximizer and faces positive marginal costs,
A) there is a natural limit to the size of the firm, where MR = 0. B) there is no natural limit to the size of the firm; it can be as large as it wants to be. C) there is a natural limit to the size of the firm, where MR > 0. D) there is no natural limit to the size of the firm, hence the need for government regulation.