If the Fed wishes to increase the interest rate, it can do so by
a. selling bonds
b. buying bonds
c. increasing the money supply
d. setting a higher prime lending rate
e. encouraging the public to buy bonds
A
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If the MU of half gallon of milk is $3.50 and the MU of gallon of milk is $3.25, and they both sell for the same price, we would expect consumers to
A. increase their purchases of gallons of milk. B. increase their purchases of half gallons of milk. C. not change their purchasing habits. D. buy only gallons of milk.
If long-run equilibrium is present in a competitive market, the typical firm in the market will be
a. making economic losses. b. making zero economic profit. c. making economic profit. d. making a rate of return that is higher than the rate earned in other industries. e. both c and d are correct.
Environmentalists concern with rapid economic growth is that it will
A. lead to increases in pollution, crowding, and waste disposal. B. turn naturalists into capitalists. C. prevent society from taking action to clean up excessive pollution. D. underutilize natural resources.
The principle stating that, for virtually all goods and services, there is a negative relationship between price and quantity demanded, all other things unchanged, is the law of:
A) supply. B) demand. C) scarcity. D) increasing opportunity costs.