Contractionary monetary policy on the part of the Fed results in
A) an increase in the money supply, a decrease in interest rates, and an increase in GDP.
B) a decrease in the money supply, an increase in interest rates, and a decrease in GDP.
C) a decrease in the money supply, a decrease in interest rates, and a decrease in GDP.
D) an increase in the money supply, an increase in interest rates, and an increase in GDP.
B
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Assuming zero transactions costs, if your local grocer buys oranges at a low price from an orchard and resells them to you at a higher price, then the grocer's revenue minus costs is known as
A) transactions profits. B) pure profits. C) excess profits. D) arbitrage profits.
Suppose there are two firms on a river and the production processes of both require clean water. The upstream firm's process dirties the water, which it dumps back into the river
The downstream firm must clean the water before using it in its production process. If the two firms would merge A) the external costs of the merged firm would equal the external costs of the upstream firm, which would then be passed on to its customers. B) the total costs of production fall since the external costs disappear. C) the external costs of the upstream firm are private costs after the merger. D) the internal costs of the downstream firm become external costs of the merged firm.
A monopolistically competitive market can also be:
A. perfectly competitive market. B. a monopoly. C. an oligopoly. D. All of the above.
Workforce quality arguments are very difficult to prove for the period of 1970 to 1990 because during that period SAT scores
a. and graduation rates increased. b. increased and graduation rates decreased. c. and school attendance rates decreased. d. decreased and school attendance rates increased.