The Federal Reserve will tend to tighten monetary policy when
a. interest rates are rising too rapidly.
b. it thinks the unemployment rate is too high.
c. the growth rate of real GDP is quite sluggish.
d. it thinks inflation is too high today, or will become too high in the future.
Ans: d. it thinks inflation is too high today, or will become too high in the future.
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Juicy Couture has been successful in selling women's clothing using an unusual strategy
According to an article in the Wall Street Journal, the key to the firm's strategy is to "limit distribution to maintain the brand's exclusive cachet, even if that means sacrificing sales, a brand-management technique once used only for high-end luxury brands." In 2006, Juicy clothes were sold in only four department stores: Neiman Marcus, Saks, Bloomingdale's, and Nordstrom. In 2006, its sales have more than quadrupled since 2002. Source: Rachel Dodes, "From Track Suits to Fast Track," Wall Street Journal, September 13, 2006. How does limiting the number of stores in which Juicy's products are sold contribute to its success? A) It enables Juicy to price its products at a premium and differentiate them from lower-priced products. B) It helps establish Juicy's products as luxury items favored by the very wealthy. C) By sacrificing sales, the company was able to focus on producing high-quality products. D) Maintaining the exclusivity of a product increases the demand for the product.
The firm's expansion path records
a. profit-maximizing output choices for every possible price. b. cost-minimizing input choices for all possible output levels for when input prices expand along with production. c. cost-minimizing input choices for all possible output levels for a fixed set of input prices. d. cost-minimizing input choices for profit-maximizing output levels.
Which of the following statements is not correct?
a. Tradable pollution permits have an advantage over corrective taxes if the government is uncertain as to the optimal size of the tax necessary to reduce pollution to a specific level. b. Both corrective taxes and tradable pollution permits provide market-based incentives for firms to reduce pollution. c. Corrective taxes set the maximum quantity of pollution, whereas tradable pollution permits fix the price of pollution. d. Both corrective taxes and tradable pollution permits reduce the cost of environmental protection and thus should increase the public's demand for a clean environment.
As unemployment rose during the recession of 2007-2009, black teenage unemployment
A. remained essentially unchanged. B. fell to 18.2%, a rate less than half that of white teenagers. C. rose to 18.2%, a rate less than half that of white teenagers. D. rose to 49.2%, a rate more than twice that of white teenagers.