For the past half century, the Federal Reserve has expressed policy in terms of a target value for:
A. open market operations.
B. the federal funds rate.
C. the Federal Reserve discount rate.
D. bank reserves.
Answer: B
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Suppose you have just opened a store to sell espresso machines. Both you and a competing store buy this machine from a manufacturer for $130 each
Your competitor who has a store of the same size as yours is currently selling about 10 machines a month at a price of $200 per machine. You expect to sell about 6 machines a month at a price of $220 per machine. If you lower your price, you expect to make a loss. Which of the following could explain why your competitor is able to profitably sell the machine at a lower price although the cost of purchasing the machine is the same for the both of you? A) The competing store probably has a lower marginal cost of production. B) The competing store's goal is to maximize revenue and not profit. C) The competing store probably has a lower average cost because average fixed cost falls as output increases. D) The competing store probably has a lower average variable cost of production.
Who bears the burden of an excise tax if demand is perfectly inelastic; if supply is perfectly inelastic? Use graphs in your explanation
In a closed economy, what remains after paying for consumption and government purchases is
a. national disposable income. b. national saving. c. public saving. d. private saving.
While China's exports are consistent with the predictions of the Heckscher-Ohlin theory, China's imports are not.
Answer the following statement true (T) or false (F)