In the short run:
A. firms have the ability to enter or exit the industry.
B. firms are able to alter some, but not all, of their factors of production.
C. firms are unable to adjust their output choices.
D. None of these are correct.
Answer: B
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If you buy a futures contract for U.S. Treasury bills and on the delivery date the interest rate on T-bills is lower than you expected, you will have
A) lost money on your long position. B) gained money on your long position. C) lost money on your short position. D) gained money on your short position.
Economist B thinks that it is important to identify the condition(s) under which the case for government is strongest. With respect to the provision of nonexcludable public goods, she says
A) people must pay taxes to pay for the nonexcludable public good. B) firms must pay taxes to pay for the nonexcludable public good. C) people must actually want the nonexcludable public good that the government provides. D) people must express their desire for the nonexcludable public good by voting for it. E) none of the above
Money is
What will be an ideal response?
An increase in the discount rate ________ bank reserves and ________ the money supply if banks respond appropriately to the change in the rate
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases