On the production possibilities curve, a movement between points that yields a loss of one good in order to raise the output of another good will maintain efficient production
a. True
b. False
Indicate whether the statement is true or false
True
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Compounding refers to
A) the calculation of interest rates after the compounding effect of taxes has been allowed for. B) the paying back of both interest and principal during the life of a fixed payment loan. C) the process of earning interest on both the interest and the principal of an investment. D) the increased value of an investment that arises from the payment of periodic interest.
The immediate effect of a member bank's sale of U.S. government securities to the Fed is a(n):
a. increase in that bank's required reserves. b. decrease in that bank's required reserves. c. increase in that bank's excess reserves. d. decrease in that bank's excess reserves. e. decrease in the Fed's assets.
Suppose the money demand curve shifts rightward. Which of the following is true about the alternative policy options available with the Fed? a. The Fed can keep the interest rate from rising only if it increases the money supply
b. The Fed cannot prevent the interest rate from rising. c. The Fed can prevent the interest rate from rising without changing the money supply. d. If the Fed expands the money supply, the interest rate will rise even further. e. The Fed should reduce the money supply if it plans to prevent the interest rate from rising.
The potential for maximizing total industry profits is greater in oligopolies than in perfect competition because
A. There are fewer firms and each is dependent on the actions of rivals. B. Firms in an oligopoly are more profitable. C. Perfectly competitive firms can easily cooperate to restrict supply. D. There are independent firms in an oligopoly.