The marginal cost curve is
A) downward sloping to reflect the bowed out PPF.
B) downward sloping as marginal benefits increase.
C) upward sloping because marginal cost falls as more of a good or service is produced.
D) upward sloping to reflect the increasing opportunity cost of producing one more unit.
E) U-shaped to reflect the bowed out PPF.
D
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According to the interest-rate-based monetary policy transmission mechanism, an increase in the money supply will
A) lead to an increase in investment spending and an increase in real GDP which is greater than the increase in investment spending. B) lead to an increase in investment spending and a decrease in real GDP that is equal to the increase in investment spending. C) lead to a decrease in investment spending and an increase in real GDP that is equal to the decrease in investment spending. D) lead to a decrease in investment spending and an increase in real GDP which is greater than the decrease in investment spending.
In the aftermath of the human devastation and misery of the Great Depression, many people—including many economists—became more aware of
a. the need for independence in the market-oriented economic system. b. the need to replace the market-oriented economic system. c. vulnerabilities within the market-oriented economic system. d. the strengths of the market-oriented economic system.
While it can be hard to measure, when it comes to education, _______________ around the world.
a. the psychic cost is high b. the level of suspicion is increasing c. the social rate of return is positive d. the purely private benefits outweigh the social benefits
A bank can eliminate its negative excess reserves by doing each of the following except
A. borrowing in the Federal Funds market. B. borrowing at the discount window. C. buying United States government securities. D. not renewing loans.