Which of the following is a problem in pursuing monetary policy?
A) The lag between a change in the quantity of money and its effect on economic activity may be long.
B) The Fed must reveal to the public anytime the Fed changes its policy.
C) Monetary policy must be approved by the Congress.
D) The Fed cannot control the federal funds rate.
E) None of the above answers is correct.
A
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Answer the following statements true (T) or false (F)
1. All goods and services produced during the year are added to the total wealth of the nation. 2. Stocks and bonds are counted as part of total wealth. 3. To understand the purpose of a given economic policy, it is necessary to understand the influence of political and social policies. 4. Economics is an isolated science since it has no relation to other sciences.
Which of the following can lead to market failure?
a. externalities and market power b. externalities but not market power c. market power but not externalities d. neither externalities nor market power
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point B to Point A is
A. -2/3. B. -3/4. C. -1.5. D. -20.
Refer to the information provided in Figure 11.1 below to answer the question(s) that follow. 
Figure 11.1 Refer to Figure 11.1. If the market rate of interest is 5%, this firm's investment will total
A. $5,000. B. $8,000. C. $15,000. D. $27,000.