Open market purchases of bonds by the Federal Reserve eventually
a. reduce the pressures on bond markets
b. increase real GDP
c. lead to open market sales of bonds
d. increase the interest rate
e. encourage tax increases
B
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Assume that Ava is a single parent who is in poverty. She receives food stamps and Medicaid. For every $100 that she earns, Ava loses $20 of her food stamp benefits and $15 in her Medicaid benefits. Ava's implicit marginal tax rate from these two programs is
a. 20 percent. b. 30 percent. c. 35 percent. d. 45 percent.
Tony is the owner of Tony's Taqueria. Tony is a profit-maximizing owner whose firm operates in a competitive market. An additional worker costs Tony $200 and has a marginal productivity of 40 tacos. Assuming no other variable costs, what is the marginal cost of a taco?
a. $200 b. $8 c. $5 d. There is insufficient information available to answer this question.
Many countries in the Far East, such as South Korea and Tawin have experience decades of repaid economic growth following by lower economic growth recent year. The phenomenon is known as
A. The catch-up-effect B. The exploitation effect (WA) C. The Asian effect D. The supper growth effect E. The over investment effect.
A major distinction between a monopolistically competitive firm and an oligopolistic firm is that:
A. one necessarily faces a downward-sloping demand curve and the other a horizontal demand curve. B. one always produces differentiated products and the other always produces a homogeneous product. C. one is a price taker and the other is a price maker. D. a recognized interdependence exists between firms in one industry but not in the other.