The Taylor rule is an example of
A) an instrument rule focused on the monetary base.
B) an instrument rule focused on the federal funds rate.
C) an instrument rule based on M1.
D) a targeting rule focused on the monetary base.
E) a targeting rule focused on the federal funds rate.
B
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If the ________ minus the ________ is positive, Project A is chosen over Project B
A) cost of Project A; cost of Project B B) net benefit of Project B; net benefit of Project A C) net benefit of Project A; net benefit of Project B D) total benefit of Project B; total benefit of Project A
Two consequences of asymmetric information are adverse selection and moral hazard. An important distinction between the two is
A) adverse selection exists prior to the completion of a transaction while moral hazard occurs after the transaction is completed. B) moral hazard exists prior to the completion of a transaction while adverse selection occurs after the transaction is completed. C) moral hazard leads to an inefficient quantity while adverse selection leads to an efficient quantity. D) adverse selection leads to an inefficient quantity while moral hazard leads to an efficient quantity.
What is the average cost per unit if the firm produces 5 units?
a. $196 b. $980 c. $182 d. $910
What can you deduce about the type of good Patty’s Pizza is and about the relationship between Patty’s Pizza and Sue’s Subs?
Suppose that when the average college students income is $10,000 per year, the annual quantity demanded of Patty's Pizza is 50 and the annual quantity demanded of Sue's Subs is 80. Suppose that when the price of Patty's Pizza increases from $8 to $10 per pie, the quantity demanded of Sue's Subs increases from 80 to 100. Suppose also that when the average student's income increases to $12,000 per year, the annual quantity demanded of Patty's Pizza increases from 50 to 60 a) Patty's Pizza is a normal good and Patty's Pizza and Sue's Subs are substitutes b) Patty's Pizza is a normal good and Patty's Pizza and Sue's Subs are complements c) Patty's Pizza is an inferior good and Patty's Pizza and Sue's Subs are substitutes d) Patty's Pizza is an inferior good and Patty's Pizza and Sue's Subs are complements