The assumption of transitive preferences implies that indifference curves must:
A) not cross one another.
B) have a positive slope.
C) be L-shaped.
D) be convex to the origin.
E) all of the above
A
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By using open market operations, the Federal Reserve
A) adjusts the supply of reserves to keep the federal funds interest rate equal to its target. B) controls banks' demand for reserves, thereby keeping the federal funds rate equal to its target. C) adjusts the demand of reserves to keep bank rates in line with the federal funds rate target. D) adjusts the supply and demand of reserves to keep the federal funds interest rate equal to its target. E) None of the above answers is correct.
What is a natural monopoly and what problem does natural monopoly pose for regulators?
What will be an ideal response?
If the government establishes a price floor at 75 percent of parity, this would imply that
a. price ceilings on farm goods must be 125 percent of parity b. price ceilings on farm goods must be 25 percent of parity c. farm prices can be no less than 75 percent of their 1910–1914 level d. farm prices can only rise to 75 percent of their 1910–1914 level e. farmers' purchasing power will be no less than 75 percent of 1910–1914 purchasing power
The price of oranges falls. What happens in the market for apples, which are a substitute for oranges?
A) The equilibrium price falls and the equilibrium quantity rises. B) The equilibrium price rises and the equilibrium quantity falls. C) The equilibrium price and quantity rise. D) The equilibrium price and quantity fall.