The assumption that nothing changes except the variables being studied is
A) the ceteris paribus assumption.
B) the rationality assumption.
C) positive economic analysis.
D) normative economic analysis.
A
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When the Federal Reserve Banks decide to buy government bonds from banks and the public, the supply of reserves in the federal funds market ________.
A. increases and the federal funds rate increases B. decreases and the federal funds rate decreases C. increases and the federal funds rate decreases D. decreases and the federal funds rate increases
If at its current production level, a perfectly competitive firm's marginal revenue and long-run marginal cost are equal to $1.50 and its long-run average cost is $1.65, which of the following statements is true?
A) The firm should expect the market price of its product to increase. B) The firm should expect to earn positive economic profit indefinitely. C) The firm should expect the market price of its product to fall. D) The firm should expect the market supply curve to increase.
The following are all determinants of income differences examined in the text EXCEPT
A) age. B) marginal productivity. C) inheritance. D) height.
Stocks are a form of debt obligation
Indicate whether the statement is true or false