Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study?
a. Unemployment rate falls from 7.5 percent to 7.3 percent.
b. Real GDP falls by 0.4 percent in the third quarter.
c. Inflation was 2.4 percent last year.
d. The price of gasoline rises due to rising oil prices.
d
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Which of the following statements is correct?
a. A large, well-known corporation such as Proctor and Gamble would generally use financial intermediation to finance expansion of its factories. b. On average, indexed funds outperform managed funds. c. Unlike corporate bonds and stocks, checking accounts are a store of value. d. Financial intermediaries are institutions through which savers can directly provide funds to borrowers.
An open market purchase by the Fed
A) decreases the supply of money. B) increases the supply of money. C) decreases the demand for money. D) increases the demand for money.
Explain why some firms may suffer diseconomies of scale.
What will be an ideal response?
The cost effect implies that
A. Higher costs are reflected in higher average prices. B. The aggregate demand curve is downward-sloping. C. The aggregate supply curve is linear. D. Lower average prices result in greater quantity supplied.