In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a ________ in the reserve requirement decreases the demand for reserves, ________ the federal funds interest rate,
everything else held constant. A) rise; lowering
B) decline; raising
C) decline; lowering
D) rise; raising
C
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Which of the following holds true?
A) When the Marginal Product (MP) is rising, Marginal cost (MC) is rising; and when MP is falling, MC is falling. B) When MP is rising, MC is falling, and when MP is falling, MC is rising. C) When MP is rising, MC is constant, and when MP is falling, MC is negative. D) There is no relationship between MP and MC.
How will the price and output of a monopolist compare with perfect competition?
a. The output of the monopolist will be too large and the price too high. b. The output of the monopolist will be too large and the price too low. c. The output of the monopolist will be too small and the price too high. d. The output of the monopolist will be too small and the price too low.
The desirable level of output in a perfectly competitive market if there exists a detrimental externality is
a. the point at which MSC curve intersects the marginal revenue curve. b. the point at which MSC intersects the MPC. c. the point at which MSC intersects MPC. d. the point at which marginal revenue curve intersects the MPC.
Because government services are not sold in markets,
A. taxes are used to value their contribution. B. the government tries to estimate their market value and uses this to measure the government's contribution to GDP. C. they are valued at their cost of production. D. they are excluded from measurements of GDP.