The interest rate that the Fed charges banks for borrowing funds is called the federal funds rate
a. True
b. False
Indicate whether the statement is true or false
False
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The figure above shows the market for private elementary school education in Chicago. There is no external cost of private elementary education
If the government does not intervene in this market, the equilibrium number of students being privately educated is ________ and the efficient quantity is ________. A) 0 students; 400 students B) 400 students; 400 students C) 400 students; 600 students D) 600 students; 400 students E) 600 students; 600 students
Which of the following is the main reason for externalities?
A) The full cost of a transaction is not borne by the buyer/seller of the product. B) Police enforcement of scalping is not uniformly enforced. C) the lack of organized exchanges for all goods and services D) The production of public goods uses up scarce resources.
In the long run, foreign labor remains cheap when and if
A. it becomes highly efficient and competes successfully internationally. B. countries erect barriers to trade between poor countries. C. productivity increases more rapidly in poor countries than in rich countries. D. it remains inefficient compared to other countries’ labor.
The above graph shows the demand and cost conditions facing a price-setting firm. The firm will produce ________ units of output and charge a price of ________.
A. 50, $9 B. 40, $8 C. 50, $6 D. 60, $10 E. none of the above