Describe the field of economics known as microeconomics
What will be an ideal response?
Microeconomics is the study of the choices made by households, firms and government and how these choices affect the markets for goods and services.
You might also like to view...
When the average total cost curves for firms are unaffected by the entry of other firms,
a. it is an increasing-cost industry b. it is a decreasing-cost industry c. the market's equilibrium price will eventually be restored after the market demand increases d. firms will charge a higher price when demand rises e. the long-run supply curve is positively sloped
Which of the following policies is NOT in the Fed's monetary toolbox?
a. Buying government bonds b. Increasing the quantity of reserves c. Lending reserves to banks d. Issuing a bank run
When a second firm enters a monopolist's market,
A. the monopolist's demand curve decreases. B. the monopolist's demand curve increases. C. the monopolist's supply curve decreases. D. the monopolist's supply curve increases.
If, during a deposit expansion, not all money gets redeposited into the banking system and some leaks out as currency, then the real world multiplier is
A) smaller than 1/RR. B) larger than 1/RR. C) equal to 1/RR. D) not related to 1/RR.