Which of the following policy actions by the Fed would cause the money supply to decrease?
a. A decrease in required reserve ratios.
b. An open-market purchase of government securities.
c. A decrease in the discount rate.
d. An increase in the discount rate.
d
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Use the following graph to answer the next question.
If the industry operates as a pure monopoly, the profit-maximizing quantity of output would be ________.
A. a level that is not labeled in the graph B. 195 C. 160 D. 90
"The minimum wage should be increased so that low-income workers can afford to feed their families." This is an example of: a. a positive economic statement
b. a negative economic statement. c. the fallacy of composition. d. a normative economic statement.
A group of entrepreneurs is trying to decide which of five new product ideas to select. Which tool can be used to help make the decision?
A. Decision matrix B. Entrepreneurial discovery process C. Business processes D. Opportunity cost analysis
An increase in the home country's income will result in a(n) ___ in the home country trade balance, and an increase in foreign income will result in a(n) ___ in the home country trade balance.
a. fall; fall b. increase; increase c. increase; fall d. fall; increase