The interest rate in the federal funds market
a. is determined by the imposition of price controls imposed by the Fed.
b. will tend to rise when the quantity of funds demanded by banks seeking additional reserves exceeds the quantity supplied by banks with excess reserves.
c. will tend to fall if the Fed sells bonds and, thereby, reduces the reserves available to banks.
d. is an interest rate that is largely unaffected by the policies of the Fed.
B
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According to Figure 2.5, the United States civilian labor force in June 2013 was ________
A) 157.1 million B) 144.8 million C) 245.6 million D) 100.8 million E) none of the above
Cyclical unemployment is:
A. unemployment caused by short-term economic fluctuations reflected in GDP growth. B. unemployment resulting from a mismatch between the skills workers can offer and the skills demanded. C. unemployment caused by workers who are changing their location, job, or career. D. the effect of wages remaining persistently above the market-clearing level.
You like to sleep until 9:00 am during the semester. What is the opportunity cost of attending an 8:00 am class?
A. sleep B. obtaining the notes from the 8:00 am class C. the credit hours earned from the 8:00 am class D. nothing, since you can go back to bed later
Marginal cost may be defined as
A. the change in average total cost that results from producing one more unit of output. B. the change in average variable cost that results from producing one more unit of output. C. the change in total cost that results from producing one more unit of output. D. the rate of change in total fixed cost that results from producing one more unit of output.