If the Fed purchases government bonds, it
A) decreases bank reserves and the supply of money.
B) decreases bank reserves but increases the supply of money.
C) increases bank reserves and the supply of money.
D) increases bank reserves but decreases the supply of money.
C
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If a firm has implicit costs as well as explicit costs,
A) accounting profit will be zero. B) net income will always be greater than accounting profit. C) net income will always be less than accounting profit. D) economic profit will be less than accounting profit.
An increase in the minimum wage
a. increases both the quantity demanded and the quantity supplied of labor. b. decreases both the quantity demanded and the quantity supplied of labor. c. increases the quantity of labor demanded but decreases the quantity of labor supplied. d. decreases the quantity of labor demanded but increases the quantity of labor supplied.
Why do used goods of different qualities often sell for the same price, while used goods of different sizes sell for different prices?
What will be an ideal response?
Specialization allows for
A) more consumption for all trading partners. B) more consumption for the trading partner with the comparative advantage. C) more consumption for the trading partner with the absolute advantage. D) equal consumption among trading partners.