The term "open market operations" refers to the:
a. loan-making activities of commercial banks.
b. effect of expansionary monetary policy on interest rates.
c. operation of competitive markets in the banking industry as the result of deregulation.
d. buying and selling of government securities by the Federal Reserve.
d
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During the 1960s and early 1970s, economists believed that the Phillips curve indicated
a. that higher inflation was the price for more unemployment. b. that higher levels of employment could be achieved with lower inflation. c. a menu of choices for policy makers. d. All of the above are correct.
If leisure is drawn on the horizontal axis and labor is drawn on the vertical axis, then a person who attaches more importance to leisure than to labor will have indifference curves that:
A. tend to be steeper. B. tend to be flatter. C. will be positively-sloped. D. will be L-shaped.
A dollar's value can change:
A. across different locations. B. over time. C. Both of these statements are true. D. Neither of these statements is true.
Alex and Ben are both loggers wanting to harvest timber from the same forest. Alex prefers to harvest and replant at a sustainable rate; Ben wants to harvest as many trees as possible to maximize short-run profit, and then move on. They face the same
production costs. Refer to the information given. If property rights are poorly enforced or nonexistent: A. Ben will choose to harvest as quickly as possible, but Alex will choose to harvest more slowly and replant. B. both will harvest trees as quickly as possible, before the other one does. C. both now have an incentive to harvest and replant in a sustainable manner. D. we would expect them to form an agreement on harvesting and replanting.