The Fed can change the money supply by buying or selling long-term Treasury bonds. Purchasing long-term securities is commonly called
A) open market operations. B) quantitative easing.
C) discount operations. D) federal funds speculation.
B
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In the figure above, point E could be obtained if
A) resources were shifted from education to health care. B) resources were used more efficiently. C) society's resources increased. D) resources were shifted from health care to education.
A consumer's budget constraint is:
A. a positively-sloped line. B. a negatively-sloped line. C. convex. D. a vertical line at the level of the consumer's income.
Your firm sells club soda in both grocery stores and convenience stores. You have a budget of $550 for store displays, and must decide how to allocate this budget between grocery stores and convenience stores to maximize the total number of sales. The following table shows the total number of units that can be sold in grocery stores and convenience stores, according to the number of displays in each type of store. Displays in grocery stores cost $150 each and displays in convenience stores cost $100 each. 
Given the above information, to maximize the total number of sales, you should choose
A. 3 grocery store displays and 4 convenience store displays. B. 3 grocery store displays and 3 convenience store displays. C. 1 grocery store display and 4 convenience store displays. D. 3 grocery store displays and 2 convenience store displays.
The price elasticity of demand is
A) always positive, so there is no reason to consider the absolute value of the price elasticity of demand. B) always negative, but by convention, economists typically express the price elasticity of demand as an absolute value. C) always equal to -1, which by convention economists typically express as an absolute value, or 1. D) always equal to zero, so there is no reason to consider the absolute value of the price elasticity of demand.