Suppose that the Federal reserve is concerned about the effects of falling stock prices on the economy. What could it do?
a. buy bonds to raise the interest rate
b. buy bonds to lower the interest rate
c. sell bonds to raise the interest rate
d. sell bonds to raise the interest rate
b
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If you are willing to sell your lawn mower business for $355,000 and someone offers you $420,000 for it, this transaction will generate:
a. There is no surplus created b. $65,000 worth of seller surplus and unknown amount of buyer surplus c. $30,000 worth of buyer surplus and $35,000 of seller surplus d. $65,000 worth of buyer surplus and unknown amount of seller surplus
Many of the new pollutants to which the world has been subjected are
a. less visible. b. less malodorous. c. far more dangerous. d. All of the above are correct.
A “backstop resource” is a close substitute for a depletable resource that is available in almost unlimited supply but at a higher cost. Shale oil is a backstop resource for crude oil. Which of the following statements is correct?
A. The production of shale oil is likely to increase over time even if crude oil is still available. B. Shale oil is unlikely to be produced until all the crude oil has been depleted. C. The existence of shale oil as a backstop resource will discourage firms from seeking new reserves of crude oil. D. In the future, shale oil is likely to be produced at the same time as crude oil and to sell for a lower price.
Dissaving occurs when
A. consumption spending exceeds real disposable income. B. the average saving rate for the nation unexpectedly falls. C. households reduce their planned monthly saving. D. households deposit unusually large amounts of money into their savings account.