The maximum price that a buyer would be willing to pay for a good or service is also called:
A. the buyer-max price.
B. the reservation price.
C. the opportunity cost.
D. the reserved max price.
Answer: B
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If the value of in-kind transfers are taken into account, the number of families living in poverty in the United States would
a. increase by about 1 percent. b. decrease by about 1 percent. c. decrease by about 5 percent. d. decrease by about 10 percent.
Human capital is
a. an important determinant of wages, but it does not affect the production of goods and services. b. an important determinant of wages, and it affects the production of goods and services. c. a specific type of physical capital made by humans rather than machines. d. very different from physical capital in that physical capital represents an investment, while human capital does not represent an investment.
When the Fed reduces the discount rate, this sends a signal to banks that the Fed wants:
A. the money supply to contract. B. to reduce the reserve requirement. C. the money supply to expand. D. the federal funds rate to increase.
The two primary objectives of the Fed are:
A) low and predictable levels of inflation, and interest rates above 10%. B) zero inflation, and zero unemployment. C) low and predictable levels of inflation, and zero unemployment. D) low and predictable levels of inflation, and maximum levels of employment.