Which of the following is not an example of monetary policy?
What will be an ideal response?
An increase in the earned income tax credit.
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The quantity of one good that is given up to produce another is defined to be its
a. market value b. opportunity cost c. relative cost d. absolute cost e. nominal cost
When you watch a professional football game, you may see the Nike swoosh on the players' jerseys. When you see people on the street, you may see people wearing Nike T-shirts or Nike shoes. It seems, at times, most everybody sports that swoosh. You are likley to say: "Gosh, Nike must be a monopoly.". But think twice. Is it? To define the market it's in, it would be most helpful if you had
information concerning a. its prices relative to those of other firms producing similar goods, such as Reebok b. the shape of its demand curve c. its cross elasticities of demand with other goods and its market share d. whether or not brand loyalty exists e. whether it advertises or not
Unless otherwise specified, because it is what people and businesses use in their day-to- day market transactions, when referring to money, economists are talking about
a. M1 b. M2 c. M3 d. credit cards e. liquidity
When interest rates go up, it is:
A. more expensive for businesses to borrow, so investment increases. B. cheaper for businesses to borrow, so investment falls. C. cheaper for businesses to borrow, so investment increases. D. more expensive for businesses to borrow, so investment falls.