Based on the figure above, the price of a can is $8; if the price increased to $12, then the firm would
A) produce zero cans.
B) decrease the amount of cans produces it but not to zero.
C) not change the amount of cans it produces.
D) increase the amount of cans it produces.
E) More information is needed to determine what action the firm will take.
D
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The idea that there is no voting system that can consistently make a fair choice among three or more candidates is a conclusion of
A) Arrow's impossibility theorem. B) the Condorcet paradox. C) the Voting Rights Act of 1965. D) the median voter theorem.
Refer to Table 18-3. Given the following exchange rates in the above table, what are the exchange rates stated as U.S. dollars per Danish krone and U.S. dollars per EU euro respectively?
A) 0.02 dollars per krone and 0.70 dollars per euro B) 0.05 dollars per krone and 1.30 dollars per euro C) 2.00 dollars per krone and 7.14 dollars per euro D) 0.20 dollars per krone and 1.43 dollars per euro
During a period of inflation, the Fed is likely to:
a. sell government securities to banks in order to reduce the amount of loanable funds. b. buy government securities from banks in order to reduce the amount of loanable funds. c. raise taxes in order to reduce the money supply. d. cut the required reserve ratio in order to reduce the amount of excess reserves banks have to loan out. e. cut the discount rate in order to increase the affordability of loanable funds.
Which of the following statements is true?
A) The demand curve for money balances represents a direct relationship between the quantity demanded of money balances and the price of holding money balances. B) In the United States, the position of the money supply curve is determined exclusively by the Fed. C) The "money market" discussed in this chapter refers to the market for short-term securities. D) If, at a given interest rate, individuals want to hold less money than is supplied, this will put downward pressure on the interest rate. E) none of the above