How does the Fed reach its target for the federal funds rate?
A) by changing the discount rate
B) by changing reserve requirements
C) by adjusting the level of reserves
D) by directly setting the federal funds rate
C
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All actions and purchases, even those of wealthy people, involve a sacrifice
a. True b. False Indicate whether the statement is true or false
Due to Pigou’s “defective telescopic faculty,” a market economy is inefficient in allocating resources between the present and the future.
Answer the following statement true (T) or false (F)
Table 30.1Number of workers (per hour)Total output (per hour)Marginal physical product (output per worker)Total revenue (dollars per hour)Marginal revenue product (dollars per hour worker)14---________---210________________________315________________________419________________________522________________________Assume that the product price is $4 per unit and that the hourly wage for workers is $12. Neither price nor wage changes with output. In Table 30.1, the marginal physical product of the third worker hired is
A. 15 units per hour. B. 3 units per hour. C. 4 units per hour. D. 5 units per hour.
Supply restrictions in the farming industry occur in the form of
A. Production subsidies. B. Import quotas. C. Government stockpiles. D. Price supports.