Which of the following is considered a microeconomic issue?
A. The Federal Reserve cuts key interest rates in order to stimulate lending.
B. India experiences a reduction in unemployment after opening its borders to trade.
C. Walmart decides to add more self-checkout machines as the cost of labor rises.
D. Chinese economic growth has declined.
Answer: C
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Graphically, the marginal revenue curve of a monopolist:
a. will sometimes lie below the demand curve of the monopolist. b. will always lie below the demand curve of the monopolist. c. is the same as the demand curve of the monopolist. d. will equal ?1 when the elasticity of demand is unitary.
The MPC shows the relationship between:
a. interest rates and investment. b. disposable income and consumer spending. c. saving and investing. d. inflation and unemployment
One important current monetary policy question is
A. how long the fed funds rate has been near zero. B. whether quantitative easing can raise the funds rate back to a normal level. C. how soon to raise the fed funds rate back to a normal level. D. whether to raise the fed funds rate back to a normal level.
When government borrowing decreases private investment by raising the market interest rate, this is known as
A. the Director's Law. B. crowding out. C. positive economics. D. the Ramsey Rule.