The rate of interest charged by the Federal Reserve to member banks for reserves borrowed from the Fed is known as the:

a. federal funds rate.
b. discount rate.
c. repurchase rate.
d. Q-ceiling rate.


b

Economics

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Bauxite is used for making aluminum. Which of the following will happen if bauxite prices fall, assuming all else equal?

A) The labor demand curve of aluminum manufacturers will shift to the right. B) The labor demand curve of aluminum manufacturers will shift to the left. C) Aluminum manufacturers will move to a higher point along their labor demand curves. D) Aluminum manufacturers will move to a lower point along their labor demand curves.

Economics

Ceteris paribus, a 10 percent increase in income results in a 50 percent decline in the quantity of potatoes purchased. This implies potatoes can be categorized as _____

a. complements b. substitutes c. inferior goods d. normal goods e. luxury goods

Economics

The labor supply curve shows

a. how much output a firm will supply with a given amount of labor b. how much labor a firm will want to hire at each wage rate c. how much output people will want to buy if they supply a given amount of labor d. how much labor a firm will need with a given amount of machinery and equipment e. how many people will want jobs at each wage rate

Economics

When individuals and businesses are permitted to trade freely over a larger market area,

a. wages will decline to the level of the poorest country in the region. b. the monopoly power of business firms will increase. c. they will be able to produce a larger output and consume a more diverse bundle of goods. d. businesses will be able to earn higher profits, but the income levels of individuals will decline.

Economics