Which among the following will happen if the Fed buys bonds from a private bank?
A) The private bank's total assets will decrease. B) The Fed's total assets will decrease.
C) The private bank's total assets will increase. D) The Fed's total liabilities will increase.
D
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Refer to Scenario 8.2. The more elastic is demand for yachts,
A) the more Q will fall and the more P will rise. B) the less Q will fall and the more P will rise. C) the more Q will fall and the less P will rise. D) the less Q will fall and the less P will rise. E) the closer is the new equilibrium point to the old.
Would Tom install the safety equipment?
a. Yes because it costs him less than it is worth b. Yes because it costs him more than it is worth c. No because it costs him more than it is worth d. No because it costs him less than it is worth
Economics is the study of how:
a. humans make decisions in the face of scarcity. b. resources are used to meet human needs. c. humans make decisions when there is an abundance of goods. d. human needs translate to business transactions.
Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision
a. might increase profits if it attracts a better pool of workers to apply for jobs at his restaurant. b. will reduce the excess supply of labor. c. is an example of the benefits of a minimum-wage law. d. All of the above are correct.