The most important tool of monetary policy is:
A. the discount rate.
B. open-market operations.
C. market interest rates.
D. reserve requirement ratios.
Answer: B
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A decrease in United States net foreign direct investment would occur if
A) net capital flows increase. B) net foreign investment decreases. C) U.S. citizens have decreased the value of foreign stocks and bonds they own. D) U.S. citizens have decreased their building or purchasing of facilities in foreign countries.
An increase in the productivity of workers shifts the labor ________ curve to the ________.
A. supply; right B. demand; left C. supply; left D. demand; right
To reach the socially optimal allocation of resources, the amount of government revenue received from a pollution tax should be
a. equal to the negative externality cost associated with producing the good b. less than the negative externality cost of producing the good c. greater than the negative externality cost of producing the good d. equal to the private cost of producing the good e. greater than the private cost of producing the good
A profit-maximizing monopolist
a. is just as socially efficient as a perfectly competitive firm in allocating resources to production since she, too, seeks the largest return on his investment. b. produces an output level at which marginal utility exceeds marginal cost. c. produces more output than a perfectly competitive industry. d. always produces in the inelastic region of his demand curve.