Is the $208 million that electricity producers will spend to comply with the new rules part of the opportunity cost of producing electricity?
What will be an ideal response?
The $208 million is part of the opportunity cost of producing electricity because it represents the purchase of goods and services neces-sary to produce electricity.
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Microsoft hires marketing and sales specialists to decide what prices it should set for its products, whereas a wealthy corn farmer in Iowa, who sells his output in the world commodity market, does not. Why is this so?
A) because unlike Microsoft, the wealthy corn farmer is probably a monopolist B) because the wealthy corn farmer is a price taker who chooses his optimal output independently of market price but Microsoft's optimal output depends on the price it selects C) because Microsoft could potentially lose sales if it sets prices indiscriminately D) because Microsoft is large enough to hire the best people in the field
An increase in an effective federal minimum wage would tend to cause ________
A) a decrease in wage rates and an increase in employment B) an increase in wage rates and employment C) a decrease in wage rates and employment D) an increase in wage rates and a decrease in employment
The Fed makes a loan to your bank by
a. creating a deposit in your bank's reserve account b. moving a deposit from some other bank's reserve account to your bank's reserve account c. delivering new, uncirculated currency to your bank's vault d. taking over some of your bank's liabilities e. moving liabilities from your bank to other banks
If Matt Taylor gets his $800 loan from the Paris First National Bank in cash rather than in the form of a new checkable deposit, the:
A. Paris First National Bank will get $800 in new reserves. B. Paris First National Bank will not get $800 in new reserves. C. assets of the Paris First National Bank will increase by $800. D. assets of the Paris First National Bank will decease by $88.