Answer the following questions true (T) or false (F)
1. The Fed can change the money supply more quickly by using open market operations as compared to discount policy.
2. The Fed has complete control over the money supply.
3. An open market purchase of Treasury securities by the Federal Reserve causes the reserves of banks to rise.
1. TRUE
2. FALSE
3. TRUE
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The category of "rent" in the income approach to GDP
A) does not have any connection to owner-occupied housing. B) includes the money paid to use land and other rented inputs. C) includes the money paid to rent apartments only. D) includes the money paid to rent machinery only. E) includes only the imputed rent for owner-occupied housing.
An industry with a concentration ratio of 100 would have no more than ___ firm(s).
A. 1 B. 2 C. 3 D. 4
A monopolist's marginal cost is less than the price it charges.
Answer the following statement true (T) or false (F)
If a firm has implicit costs as well as explicit costs
A) net income will always be less than accounting profit. B) accounting profit will be zero. C) net income will always be greater than accounting profit. D) economic profit will be less than accounting profit.