An open market operation involves
What will be an ideal response?
the Federal Reserve's purchase or sale of government securities.
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Suppose France can produce 9,000 potatoes or 3,000 lemons per day, and that Italy can produce 3,000 potatoes or 3,000 lemons per day. Which of the following statements in this context is true?
a. France has an absolute advantage in producing lemons. b. Italy has a comparative advantage in producing potatoes. c. Italy would be willing to trade one lemon for anything greater than one potato. d. Both countries would be willing to trade at a rate of one lemon for one potato. e. France has a comparative advantage in producing lemons.
Politicians often argue for tariff increases in order to reduce the size of a balance of trade deficit. If tariffs are increased, the long-run effect is most likely to be: a. a decrease in both U.S. imports and exports
b. an increase in both U.S. imports and exports. c. an decrease in U.S. imports, and an increase in U.S. exports. d. an increase in U.S. imports, and a decrease in U.S. exports.
Refer to the following figure showing demand and marginal revenue for a monopoly.
At any price above $________ demand is elastic.
A. $5 B. $15 C. zero D. $20 E. $10
Bottlenecks:
A. occur only in one-way networks. B. occur in both one-way and two-way networks. C. are a positive externality associated with networks. D. occur only in two-way networks.