The federal funds rate is the interest rate on short-term loans made by:
A. the Federal Reserve to the federal government.
B. the Federal Reserve to commercial banks.
C. commercial banks to other commercial banks.
D. the federal government to commercial banks.
Answer: C
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The above figure shows the U.S. market for replacement cell phone batteries. The U.S. government collects tariff revenue of ________ on each battery imported
A) $4 B) $14 C) $12 D) $6 E) $2
Suppose the price of chocolate chip cookies is $4.00 per pound and the price of a slice of cake is $2.00 per slice. The relative price of cake in terms of cookies is
A) 1/2 pound of cookies per cake. B) 2 pounds of cookies per cake. C) 1/2 slice of cake per cookie. D) 2 slices of cake per cookie.
The assumption that people do NOT intentionally make decisions that would leave them worse off is known as
A) the rationality assumption. B) the false assumption. C) the ceteris paribus assumption. D) the normative assumption.
In the housing market, rents serve the purpose of
A) making landlords rich. B) rationing the availability of existing housing. C) providing an entry by the government into the housing market. D) increasing tax collections by the community.