In its function of controlling the money supply, the Fed does all but which one of the following?
a. buys and sells U.S. government securities
b. sets the legal reserve requirement
c. sets the discount rate
d. engages in open market operations
e. prints currency
E
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The four-firm concentration ratio
A) indicates the total profitability among the top four firms in an industry. B) is an indicator of the degree of monopolistic competition. C) indicates the presence and intensity of an oligopoly market. D) is used by the government as a basis for anti-trust cases.
Suppose the exchange rate is such that 1 U.S. dollar equals 1 euro in New York and 0.9 euros in Paris. An arbitrageur would sell euros
a. in New York and buy U.S. dollars in Paris b. in Paris and buy U.S. dollars in New York c. in New York while buying them in Paris d. in Paris while buying them in New York e. at the same price in both cities
A change in price that is accompanied by a change in income sufficient to leave a consumer's well-being unchanged is called:
A. an uncompensated price change. B. a compensated price change. C. an income adjusted price change. D. the income effect.
Normally, owners of firms should try to induce their managers to care:
A. solely about profits. B. about profits and output. C. solely about output. D. None of the statements associated with this question is correct.