The firm depicted in Figure 8.1 is:
A) earning a positive economic profit.
B) incurring an economic loss and should shut down.
C) incurring an economic loss but it should continue to operate in the short run so long as price exceeds average variable costs.
D) earning a zero economic profit.
A
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The greater the number of different goods available in an economy, the:
a. less likely it is that a double coincidence of wants will exist, and the less likely it is that monetary exchange will develop. b. less likely it is that a double coincidence of wants will exist, and the more likely it is that monetary exchange will develop. c. more likely it is that a double coincidence of wants will exist, and the less likely it is that monetary exchange will develop. d. more likely it is that a double coincidence of wants will exist, and the more likely it is that monetary exchange will develop. e. more likely it is that individuals are producing only goods they want to consume.
Which of the following will decrease the money supply?
A) an increase in the discount rate (relative to the federal funds rate) B) an increase in the required reserve ratio C) an open market purchase by the Fed D) a and b E) a, b, and c
The Federal Funds rate is
A. directly determined by the Federal Reserve. B. determined by market forces alone, without Federal Reserve influence. C. determined by market forces but targeted by the Federal Reserve. D. determined by Congress.
The federal funds rate is the interest rate that _______ charge(s) _______
A. banks; other banks B. the Fed; commercial banks C. banks; their best corporate customers D. banks; on federal student loans