An increase in the discount rate ________ bank reserves and ________ the money supply if banks respond appropriately to the change in the rate
A) increases; decreases B) decreases; decreases
C) decreases; increases D) increases; increases
B
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In long-run equilibrium, a competitive firm can earn zero profit only if its technology exhibits
a. increasing returns to scale. b. decreasing returns to scale. c. constant returns to scale. d. regressive returns to scale.
In the first chapter of The Wealth of Nations, Smith introduces the idea of the __________, which means the way in which the work required to produce a good or service is divided into a number of tasks that are performed by different workers.
We all use the services of speculators as information in reaching our own economic decisions
A) because speculators are aggressive about marketing the information they produce. B) because we all use prices, which are set by bids and offers based on predictions of the future. C) if we buy or sell commodities through an organized exchange. D) if we play the stock market.
The figure above shows a firm in a perfectly competitive market. If the firm does not shut down, the least amount of output that it will produce is
A) less than 5 units. B) 5 units. C) 8 units. D) 10 units.