When the Fed wants to expand the money supply, it
A. buys government securities.
B. sells government securities.
C. buys common stock.
D. sells common stock.
Answer: A
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Goods used to produce other goods are known as
a. transitional goods b. durable goods c. nondurable goods d. services e. intermediate goods
Which of the following functions of government gives property owners the incentive to use their property efficiently?
A. making sure that courts are lenient on people who steal private property B. the enforcement of antitrust legislation C. the protection of property rights D. the financing of public goods
If a seller charges a buyer the exact price the buyer is willing to pay, then the buyer would
A) not buy the good. B) receive the maximum consumer surplus. C) receive no benefit from the good. D) receive no consumer surplus from that unit of the good. E) suffer a deadweight loss from buying the good.
Unlike a perfectly competitive firm, a monopolistically competitive firm can incur a loss in the long run
a. True b. False Indicate whether the statement is true or false