Which of the following was a reason that the Federal Reserve took on additional risks associated with unconventional policy during the recession of 2007–2009?
A. The inflated price of Treasury bills made them too expensive to purchase in open market operations.
B. The large budget deficit constrained conventional monetary policy.
C. The U.S. Treasury was unable to sell Treasury bills in the primary market.
D. The Fed was able to act more quickly than Congress.
Answer: D
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If a consumer always buys goods rationally, then
A) the marginal utility per dollar spent on all goods will be equal. B) the marginal utility of the different goods consumed will be equal. C) the average utilities of the different goods consumed will be equal. D) the total utilities of the different goods consumed will be equal.
Changing the ownership of the ocean from common property to private property would
A. not be economically desirable. B. ensure that this resource would be allocated in a more efficient manner. C. result in no appreciable change in efficiency of utilization of this resource. D. ensure that this resource would be allocated in a less efficient manner than under common property rights.
Assume that the relative prices of capital and labor have not changed. As a firm's expenditures for capital and labor increase, its isocost line
A. rotates outward on the X-intercept. B. shifts in parallel to the original isocost line. C. rotates outward on the Y-intercept. D. shifts out parallel to the original isocost line.
If NASCAR makes a business decision in favor of one track rather than another, based upon the fact that the track it chooses is owned by the same family who owns NASCAR, rather than the overall profitability of the chosen track, economists will insist that
A. monopoly does not really govern auto racing. B. this is what happens when there is significant economic competition in racing. C. competition will quickly lead to NASCAR's demise. D. this is simply a consequence of the family's monopoly power.