To reduce the money supply, the Fed can ______.
a. buy bonds
b. raise reserve requirements
c. lower the discount rate
d. decease the interest rate paid on reserves
b. raise reserve requirements
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Refer to Figure 2-4. Consider the following movements:
a. from point V to point W b. from point W to point Y c. from point Y to point Z Which of the movements listed above represents advancements in technology with respect to both plastic production and food production? A) b and c only B) a, b, and c C) c only D) b only
If a firm hires labor for $8,000, pays rent of $4,000, buys raw materials for $13,000 from another firm, earns profits of $1,200, and sells its output for $31,000, the value added by the firm is _____
a. $4,800 b. $10,000 c. $18,000 d. $25,000 e. $26,200
Demand is said to be ___________ when the quantity demanded is very responsive to changes in price.
a. elastic b. unit elastic c. inelastic d. independent
CARFAX is a company that compiles and sells histories of used cars. Used car dealers offer to give their customers a copy of the CARFAX history of the cars in their inventory to:
A. give buyers additional information about used cars for sale. B. give sellers additional information about used cars for sale. C. cause adverse selection. D. avoid having to offer warranties.