A combination of an increase in the discount rate and an open market sale of government securities by the Fed would:
a. increase the money supply
b. decrease the money supply.
c. leave the money supply unchanged.
d. have an indeterminate effect on the money supply.
b
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Learning by doing is represented by
A) a decrease in the average total cost curve. B) an increase in the average total cost curve. C) no change in the average total cost curve. D) an increase in the average total cost curve and a decrease in the marginal cost curve.
Discount rate policy is most often
a. lowered when market rates rise. b. used to actively control the money supply. c. the Fed's primary tool of monetary control. d. passively changed by the Fed to follow market rates.
Because of the number of firms in monopolistic competition,
A) each firm has a large market share. B) it is possible for the firms to collude. C) no one firm can dominate the market. D) one firm has the ability to dictate market conditions. E) each firm must carefully monitor what its competitors do.
Using the data in the above table, what is the marginal product of the third employee?
A) 2 pizzas per hour B) 3 pizzas per hour C) 4 pizzas per hour D) 12 pizzas per hour