If the Fed wished to decrease interest rates, it could
A) increase the reserve requirement or conduct an open market sale.
B) increase the reserve requirement or conduct an open market purchase.
C) decrease the reserve requirement or conduct an open market sale.
D) decrease the reserve requirement or conduct an open market purchase.
D
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Toddler Treats produces soft cereal bars for toddlers and Toddler Treats states on its packaging and in its advertising that its cereal bars are nut-free. All of the following could be accidents for Toddler Treats except which one?
A) an audit failure B) selling cereal bars that have been cross-contaminated with peanuts C) failing to earn economic profit D) infringing on other company's patent on toddler cereal bars
A man moves from a large city to a small town. In the small town he seems like a very different person than the person he was in the big city. For instance, he is more polite in the small town than he was in the big city. This could be because
A) the costs of his being impolite are higher in the big city than in the small town. B) the costs of his being impolite are higher in the small town than in the big city. C) he is a happier person in the small town and it could be that happier people are more polite. D) b and c E) a and c
At the minimum efficient level of production:
A. a firm will be at the only short-run economically efficient level of production. B. production has expanded to make the firm profitable at any price. C. the market has expanded sufficiently to take advantage of all economies of scale. D. a firm will be at the only technically efficient level of production.
A firm operating in a perfectly competitive industry will continue to operate if it earns zero economic profits because it is likely to be earning positive accounting profits
a. True
b. False
Indicate whether the statement is true or false