Decisions regarding purchases and sales of government securities by the Fed are made by the
Federal Open Market Committee (FOMC)
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How does the textbook's notion of competition as a process differ from the model of perfect competition?
A) The process notion allows for uncertainty and incomplete information; perfect competition doesn't. B) The process notion allows for price searching activity; perfect competition doesn't. C) The process notion allows for product differentiation; perfect competition doesn't. D) The process notion allows for a small number of participants; perfect competition doesn't. E) For all of the above reasons.
When new technologies make cleaner production possible,
A) emissions would fall under a system of fees, but would not fall under a system of transferable emissions permits unless the government bought back some of the permits. B) emissions would fall under a system of permits, but would not fall under a system of fees unless the government raised them. C) the price of transferable permits would rise. D) the quantity of transferable permits would rise. E) the quantity of transferable permits would fall.
Profit maximization requires that
A) the marginal factor cost of every input equals that input's marginal physical product. B) the marginal factor cost of every input equals that input's marginal revenue product. C) the amount of one input hired divided by the amount of another input hired equals the total costs of the first input hired divided by the total costs of the second input. D) equal amounts of each input are employed.
Holding other factors constant, if the education and skills of the typical worker in an economy increases, then the real wages of workers will ________ and employment of workers will ________.
A. decrease; increase B. decrease; not change C. increase; decrease D. increase; increase