If there is a recession, the Fed would most likely encourage banks to provide loans by:
A. buying government securities.
B. raising the discount rate.
C. selling government securities.
D. raising the federal funds rate.
Answer: A
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Unemployment that results from the seasonal pattern of work in specific industries is
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.
If electricity is measured on the horizontal axis, and the price of electricity becomes more expensive beyond 500 kilowatts, we draw:
A. an indifference curve that becomes flatter at 500 kilowatts. B. a budget constraint that is kinked at 500 kilowatts. C. a budget constraint that becomes steeper at 500 kilowatts. D. an Engle curve that becomes negatively-sloped at 500 kilowatts.
Money that some authority, generally a government, has ordered to be accepted as a medium of exchange is called _______ money.
A) fiat B) intrinsic C) commodity D) debt
Briefly explain the principle of comparative advantage.
What will be an ideal response?