The Fed took action in late 2008 to significantly decrease the federal funds rate. This action is best considered:
A. neither offensive nor defensive actions.
B. both offensive and defensive actions.
C. a defensive action.
D. an offensive action.
Answer: D
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Use the following graph for the market for beef to answer the question below.
Refer to the graph, which shows that the demand for beef shifted from D1 and D2. The change in equilibrium from E1 to E2 is most likely to result from a(n)
A. increase in the cost of cattle feed. B. decrease in consumer incomes. C. increase in the price of pork. D. decrease in the tax on beef products.
People who run businesses on a day-to-day basis are called:
A. engineers. B. technology experts. C. business managers. D. entrepreneurs.
Positive expected profits:
A. increase product demand. B. discourage people from supplying goods. C. encourage people to supply goods. D. have no effect on supply decisions.
To determine whether two goods are substitutes or complements, an economist would estimate the:
A. price elasticity of demand. B. income elasticity of demand. C. cross elasticity of demand. D. price elasticity of supply.