Which of the following appears as an asset on the Federal Reserve's balance sheet?
A) Capital accounts
B) U.S. Treasury deposits
C) U.S. government securities held under repurchase agreements
D) Federal Reserve notes outstanding
C
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A price support set above the equilibrium price does which of the following?
i. decreases producer surplus ii. decreases consumer surplus iii. decreases the marginal cost of the last unit produced A) i and ii B) i and iii C) ii and iii D) i, ii, and iii E) ii only
Protection of an infant industry should be withdrawn once that industry:
a. charges the same price as foreign competitors. b. goes public on the stock exchange. c. raises a large amount of sales revenue. d. achieves sufficient size to compete with foreign firms. e. earns enough profit as a result of the subsidies to remain in business.
Why might people choose to go to college?
A. A college education increases one's productivity, which will be rewarded in the labor market with higher wages. B. Someone enjoys the process of becoming educated. C. A college education signals to firms that the worker is highly motivated. D. One cannot find employment. E. All of these options are reasons people might choose to go to college.
Development refers to an increase in:
A. productive capacity with no change in output. B. output with no change in productive capacity. C. output brought about by a change in the production function. D. output brought about by an increase in inputs.