The sale of government bonds by the Federal Reserve Banks to commercial banks will ________.
A. increase aggregate demand
B. decrease aggregate supply
C. decrease aggregate demand
D. increase aggregate supply
Answer: C
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The table above lists six points on the production possibilities frontier for grain and cars. What is the opportunity cost of producing the 5th ton of grain?
A) 16 cars per ton of grain B) 6 cars per ton of grain C) 3 cars per ton of grain D) 2 cars per ton of grain
Discouraged workers are
A) those who have given up looking for work, even though they would like to be employed. B) those who quit working because they are dissatisfied with their jobs. C) those unmotivated workers who bring down a country's productivity. D) those who would like to find a second job to supplement their income, but have not yet found one.
Deterring entry might require a firm to
A) price their product closer to the competitive price than to the monopoly price. B) price their product closer to the monopoly price than to the competitive price. C) drop output almost to zero to show the consumers "who's boss." D) drop price almost to zero to get price below marginal cost.
Social regulations can create
A) a more competitive market place. B) network externalities. C) a lower HHI. D) barriers to entry.