The value of money falls. This might be because the Federal Reserve
a. bought bonds, which increased the money supply.
b. bought bonds, which decreased the money supply.
c. sold bonds, which increased the money supply.
d. sold bonds, which decreased the money supply.
a
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A(n) ________ in U.S. interest rates will cause an increase in the demand for U.S. dollars and a(n) ________ in the (per dollar) exchange rate
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
When consumption of a good or service produces benefits or costs that are not reflected in the market price for the good, this is known as a(n):
a. externality. b. common pool problem. c. nonexcludable resource. d. public good.
In the 1960s, each firm in the computer industry was able to make extremely large profit margins, some as high as 50 to 60 percent. The margin decreased to 20 to 40 percent in the 1970s and to 10 to 20 percent in the 1980s. We conclude that:
A. lower profit margins were due to the government's regulation to protect consumers. B. market power increased in the two decades. C. the industry evolved from oligopolistic to a more competitive industry in the two decades. D. lower profit margins were largely due to the mismanagement of computer firms.
Figure 10.1 depicts a firm's marginal revenue product curve. If the prevailing hourly wage increases:
A. the marginal revenue product curve shifts upward. B. the marginal revenue product curve shifts downward. C. the marginal revenue product curve does not shift, but there is a movement upward along the curve. D. the marginal revenue product curve does not shift, but there is a movement downward along the curve.