If the Federal Reserve wished to engage in contractionary monetary policy, it could
A. purchase government debt.
B. raise the federal funds rate target.
C. lower the reserve ratio.
D. lower the primary credit rate.
Answer: B
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Table 7-5 Stereos produced 0 1 2 3 4 5 6 Total cost (in $) 200 325 410 475 550 660 825 Table 7-5 shows short-run total cost figures for a stereo manufacturer. At what output level does short-run average variable cost reach a minimum?
A. 2 B. 3 C. 4 D. 5
Office Paper is an office supply firm. If the managers of Office Paper sell 5,000 boxes of staples a year and each order contains 500 boxes of staples, how many orders will the managers submit a year?
A) 10 B) 5,000 C) 500 D) 50
Define the following terms completely and concisely
a. marginal revenue b. average revenue c. optimal decision d. satisficing e. marginal profit
Many immigrants and many American high school dropouts possess very few skills. What impact will these low-skill immigrants likely have on the labor market opportunities of American high school dropouts?
A. Immigration of low-skilled workers does not affect wages paid to American high school dropouts. B. Immigration of low-skilled workers is associated with lower wages paid to American high school dropouts. C. Immigration of low-skilled workers is associated with greater employment among American high school dropouts. D. Immigration of low-skilled workers is associated with higher wages paid to American high school dropouts. E. None of the statements is correct.