The primary tool used to change the US money supply and interest rates is open market operations
a. true
b. false
Ans: a. true
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Keynesian economics developed in response to:
a. the Great Depression of the 1930s. b. the inflation following World War II. c. economic growth during the 1950s. d. the Vietnam War. e. the oil embargo in the 1970s.
As gardeners tried to make their yards places for quiet retreat, sales of backyard fountains increased. What factor affecting demand does this illustrate?
a. income b. market size c. consumer expectation d. consumer taste
The circular flow of economic activity is a model of the:
A. flow of goods, resources, payments, and expenditures between the sectors of the economy. B. influence of government on business behavior. C. influence of business on consumers. D. role of unions and government in the economy.
Exhibit 8-8 A firm's cost and marginal revenue curves
In Exhibit 8-8, product price in this market is fixed at $35. This firm is currently operating where MR = MC. Which of the following is true?
A. Price > AVC and this firm should shut down. B. This firm is earning a profit of zero. C. This firm could increase profits by increasing output. D. Price > AVC and the firm should continue producing its current output.