When the Fed buys securities
A. it is conducting open market operations.
B. it wants to increase the money supply.
C. it offers a high price on those securities which drives down interest rates.
D. All of the choices are true when the Fed buys securities.
D. All of the choices are true when the Fed buys securities.
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Marginal social cost is equal to ________
A) marginal private cost plus the marginal external cost B) the marginal external cost C) the value of the tax that will make the market efficient D) the marginal cost imposed on people other than the producer of the good
To efficiently improve environmental quality, it is usually
A) better to focus on the hardest areas to clean up first since these usually are the biggest problems. B) more appropriate to concentrate on the physical quantities of pollution rather than on economic costs. C) best to set up stringent emission standards that must be followed by everyone. D) better to focus on economic damages rather than physical quantities of pollution.
According to revealed preference a consumer that chooses to smoke cigarettes:
A. is minimizing their utility given the options available to them. B. derives more happiness from smoking than the goods they could have purchased with that same money. C. derives more utility from smoking than the goods they could have purchased with that same money. D. is behaving irrationally.
The maximum legal price that can be charged in a market is:
A. the market equilibrium price. B. a price floor. C. a price ceiling. D. an ad valorem tax.