When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; raise; decline
B. decline; lower; decline
C. decline; lower; expand
D. increase; raise; decline
Answer: D
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Which of the following is NOT included in the MZM definition of money?
A) currency. B) money market funds. C) travelers checks. D) small-denomination time deposits.
Elinor Ostrom won the 2009 Nobel Prize in economics for her research showing:
A. social norms can sometimes be powerful enough for commonly held property to be managed extremely well. B. social norms are not an effective solution for the management of commonly held property. C. that privatization of public goods is the most effective solution to market failure associated with commonly held property. D. government provision of public goods is the most efficient solution to the tragedy of the commons problem.
News reports from the western United States occasionally report incidents of cattle ranchers slaughtering a large number of newborn calves and burying them in mass graves rather than transporting them to markets. Assuming that this is rational behavior by profit-maximizing "firms," explain what economic factors may influence such behavior
If a business's total economic cost of producing 2,000 units of a product is $1,000,000 and this output is sold to consumers for $1,300,000, then the firm would earn an economic profit of:
a. $1,300,000 b. $1,000,000 c. $300,000 d. $200,000