If the FOMC decides to engage in the selling of government bonds, what is the effect on the money supply?
A) a decrease
B) an increase
C) an initial increase followed by an additional rise when the bonds mature
D) no change
A
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In the figure above, the middle fifth of all households receive what share of income?
A) 10 percent B) 30 percent C) 20 percent D) 5 percent
A risk averse person has diminishing marginal utility of wealth
Indicate whether the statement is true or false
In the above figure, which wage rate will yield the highest wage rates for particular workers?
A) W1 B) W2 C) W3 D) W3 - W2
Refer to the data provided in Table 9.2 below to answer the question(s) that follow.
Table 9.2
Refer to Table 9.2. At a market price of $28, if the firm produces where MR = MC, then it would produce ________ units of output and earn an economic profit of ________.
A. either 4 or 5; $0 B. 4; $0 C. 5; $0 D. 0; -$50