If the economy is in a recession, the Fed is likely to:
A. increase the reserve requirement.
B. buy bonds through open market operations.
C. print more currency.
D. increase the discount rate.
Answer: B
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Taxation of agricultural land at a lower rate than commercial property might be justified _____
a. on utilitarian grounds b. on the benefit principle c. on the ability-to-pay principle d. on efficiency grounds
Suppose there are 100 consumers with identical individual demand curves. When the price of a movie ticket is $8, the quantity demanded for each person is 5 . When the price is $4, the quantity demanded for each person is 9 . Assuming the law of demand holds, which of the following choices is the most likely quantity demanded in the market when the price is $6?
a. 700 b. 1,200 c. 400 d. 1,000 e. 100
Consider three bonds, from Corporation X, Corporation Y, and Corporation Z. The X and Y bonds mature in 1 year, while the Z bond matures in 2 years. The Y and Z bonds have face values of $5,000 . while the X bond has a face value of $4,000 . If the interest rate is 10 percent (0.10) per year, rank the three bonds from highest present value to lowest present value
a. X, Y, Z b. Z, Y, X c. Y, Z, X d. Z, X, Y e. Y, X, Z
If the number of unemployed equals 240,000 and the number of employed equals 300,000, the labor-force participation rate
A. is 80%. B. is 55.6%. C. is 24%. D. cannot be determined from this information.