During 2000, the government repurchased $30 billion in U.S. Treasury bonds outstanding. This was the first time this had been done since the administration of Herbert Hoover in the early 1930s
Analyze the impact of this repurchase on the bond market.
The supply curve for bonds will shift to the left, raising the price and lowering the interest rate.
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Define the term price discrimination. What conditions must hold for a firm to be able to practice price discrimination? How are consumers affected by price discrimination?
What will be an ideal response?
In a case where there are two possible work activities and two workers, which of the following is true regarding to comparative advantage?
a. One person can have a comparative advantage in both activities. b. Both people can have a comparative advantage in both activities. c. No one can have a comparative advantage in either activity. d. Each person must have a comparative advantage in one activity, but not both.
Because women have a longer average life span than men, they are paid
A) higher monthly retirement benefits by a defined benefit pension plan. B) lower monthly retirement benefits by a defined benefit pension plan. C) the same monthly retirement benefits by a defined benefit pension plan. D) the amount of monthly benefits paid to men and women by a defined benefit plan is determined by each company.
What do economists call the tendency of people at a higher wage rate to choose free time over work?
a. substitution effect b. income effect c. diversion theory d. leisure theory