In 2003, the Federal Reserve had used its control over the federal funds rate to such a degree that
A. the federal funds rate was the highest it had been in 15 years.
B. Congress stripped the Federal Reserve of this authority.
C. the federal funds rate was the lowest it had been in 15 years.
D. the federal funds rate was driven below zero.
Answer: C
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The opportunity cost of producing a good or service is the good or service that is foregone by choosing to produce another good with the same resources in a given period of time
a. True b. False Indicate whether the statement is true or false
A rise in price almost always:
a. leads to an increase in the quantity supplied of that good or service. b. leads to a decrease in the quantity supplied of that good or service. c. has no effect on the quantity supplied of that good or service. d. leads to an increase in the quantity demanded of that good or service.
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were to open to trade, the amount consumed domestically would:
A. increase by 35. B. decrease by 90. C. decrease by 35. D. increase by 90.
The short-run industry supply curve slopes up because
A) the firms eventually experience diseconomies of scale. B) the law of diminishing marginal product applies in the short run. C) wages increase as the industry increases output. D) the higher price is needed to get more firms to enter the industry.