The economy is at the equilibrium shown at point a in the above figure. If the Fed
A) sells government securities, the economy moves to an equilibrium at point b.
B) buys government securities, the economy moves to an equilibrium at point c.
C) sells government securities, the economy moves to an equilibrium at point c.
D) buys government securities, the economy moves to an equilibrium at point b.
E) None of the above is correct because the economy will remain at point a if the Fed buys or if the Fed sells government securities.
D
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The market-demand curve for a product in a perfectly competitive market:
a. is horizontal. b. is downward sloping. c. is vertical. d. has elasticity equal to 1. e. is positively sloped.
Which of the following illustrates the tragedy of the commons?
a. Overharvesting a species of fish b. Banning the use of oil and gas c. Using coal for manufacturing d. Hunting out of season
The demand for microwaves in a certain country is given by: D = 8,000 - 30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, and the government imposes a tariff of $30 per microwave, then the tariff revenue collected by the government will be ________.
A. $4,000 B. $60,000 C. $24,000 D. $40,000
What differentiates a savings deposit from a small-denomination certificate of deposit (CD)?
A. A savings deposit cannot be withdrawn before its maturity date without incurring a penalty; funds in a CD are available at any time with no interest penalty. B. A CD has a fixed maturity date; a savings deposit can be withdrawn at any time. C. All depository institutions accept savings deposits, whereas only a thrift institution can issue a CD. D. Only a savings deposit is a time deposit.