In an open-market sale the Federal Reserve ________ government bonds and the supply of bank reserves ________.
A. buys; increases
B. sells; increases
C. sells; decreases
D. buys; decreases
Answer: C
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Sonya's budget for magazines and chocolate bars is $50. Her marginal utility from these goods is shown in the table above. The price of a magazine is $5 and the price of a chocolate bar is $2.50
Sonya currently buys 4 magazines and 12 chocolate bars. To maximize her utility, she should A) buy more chocolate bars and fewer magazines. B) buy more magazines and fewer chocolate bars. C) buy more of both goods. D) stay with the current combination of goods.
Overcrowding under public school choice is not a problem because _____
a. parents find crowded schools undesirable b. parents do not mind sending their kids to schools far away from home c. schools have the ability to drastically expand capacity in the short-run d. schools will be extremely exclusionary
Comparative advantage matters most in determining the efficient distribution of production over the world
a. True b. False Indicate whether the statement is true or false
Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfare is $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1,400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfare is $450. If the Chicago-Atlanta round-trip air fare were $350, should you use the coupon to go to Miami?
A. No, your economic surplus would be -$100. B. Yes, your economic surplus would be $50. C. Yes, your economic surplus would be $400. D. No, your economic surplus would be -$50.