In the short run, how does Fed open market purchases affect interest rates?
A. increases
B. decreases
C. doesn't change
Ans: B. decreases
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Which of the following statements is true of the scientific method?
A) The scientific method may not reveal a "true" model of the world. B) The scientific method does not require the models to be tested with data. C) The scientific method used by economists and scientists is independent of empiricism. D) The scientific method can help develop accurate models even when data are unavailable.
In game theory a listing of the rewards or punishments that each player will receive for each possible combination of strategies is called
a. the marginal strategy schedule b. the payoff matrix c. strategic planning d. the input-output matrix e. the game listing payoff
The point where a firm lacks enough revenue to cover its variable costs is called the:
a. point of perfect competition. b. shutdown point. c. point of no return. d. fixed cost point.
Which of the following is true of capital controls?
A. They are socially inefficient methods of maintaining a fixed exchange rate. B. They are key to the success of a fixed exchange rate regime. C. They can be optimal when a disequilibrium is fundamental. D. They cannot be used to maintain a fixed exchange rate.