One major characteristic of the price system is that
A) consumers together are the ones who ultimately decide what is produced.
B) individual sellers ultimately decide what is produced in the market.
C) competition among sellers is reduced.
D) all exchanges are regulated by the government.
Answer: A
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In order to lower the federal funds rate, the Fed ________ government securities in open market operations, so that banks' reserves ________ and the quantity of money ________
A) buys; increase; increases B) sells; increase; decreases C) buys; decrease; increases D) buys; decrease; decreases E) sells; decrease; decreases
The above figure shows the market for rice in Japan. S2 represents the domestic supply curve, and S1 represents the world supply curve. Currently 10 units are imported. The loss from shifting production from foreign to domestic producers equals
A) c + e. B) i. C) e. D) a + c + d + e.
When the Fed raises the required reserve ratio, then the:
a. ability of banks to make loans is restricted. b. ability of banks to make loans is enhanced. c. ability of banks to make loans is unaffected. d. interest rate that banks pay to the Fed to borrow money is increased. e. interest rate that banks pay to other banks to borrow money is increased.
In 2013, about what percentage of goods and services sold in the United States was imported?
a. 5% b. 16% c. 22% d. 88%