Everything else held constant, in the market for reserves, when the demand for federal funds intersects the reserve supply curve on the vertical section, increasing the discount rate
A) increases the federal funds rate.
B) lowers the federal funds rate.
C) has no effect on the federal funds rate.
D) has an indeterminate effect on the federal funds rate.
C
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Which of the following is not an example of a market?
A. An auction B. Grocery store C. Donation center D. EBay
The opportunity cost of capital is:
a. the cost of labor inputs required to operate that capital. b. the cost of raw materials necessary to put that capital to work. c. the payment necessary to keep that capital from moving to an alternative use. d. the costs of maintenance necessary to keep that capital operating. e. the cost of hiring more units of capital to generate additional units of output.
Consider firms operating in an industry where the own price elasticity of demand is infinite; that is, EQ,P = -?. Use this information to determine the type of industry in which these firms operate and the optimal advertising-to-sales ratio.
A. Monopolistic industry and 0 B. Perfectly competitive industry and 0 C. Perfectly competitive industry and ? D. Monopolistically competitive industry and ?
What is the rationale behind a tradable emission allowance scheme?
A) to create a market for externalities: the scheme brings together buyers and sellers of marketable permits B) to discipline polluting firms by specifying the maximum amount of emissions allowed and giving them permits to pollute up to their allowance C) to raise revenue for the government through the sale of emission permits and at the same time set an emissions target D) to provide firms with the incentive to consider less costly alternatives to pollution reduction by making firms pay for the right to pollute beyond their specified allowance