The Federal Reserve System's four monetary policy goals are
A) low government budget deficits, low current account deficits, high employment, and a high foreign exchange value of the dollar.
B) a low rate of bank failures, high reserve ratios, price stability, and economic growth.
C) price stability, high employment, economic growth, and stability of financial markets and institutions.
D) price stability, low government budget deficits, low current account deficits, and a low rate of bank failures.
Answer: C
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Economists who study labor markets have discovered that
a. only about 5 percent of wage differences are related to chance. b. ability is not difficult to measure but is largely insignificant in explaining wage differences. c. work effort is difficult to measure but is not likely to contribute much to an explanation of wage differences. d. ability, effort, and chance are likely to be significant contributors to wage differences.
Suppose that the DeBeers company faces very little competition from other firms in the wholesale diamond market. Why isn't the price of wholesale diamonds $10,000 per carat?
a. because the government would not allow such a high price b. because stockholders would not allow such a high price c. because the company would sell so few diamonds that it would earn higher profits by selling at a lower price d. All of the above are correct.
An exporter is said to be engaged in _______ if it _______ goods and services at a price _______ .
A) cut-throat competition: sells; below the price in the foreign market B) retaliation; buys; above the price in the foreign market C) dumping; sells; below the foreign costs of production D) dumping; sells; below its own production cost
Generally speaking, the government implements fiscal policy in a
A. fast but inaccurate manner. B. fast and accurate manner. C. slow but accurate manner. D. slow and inaccurate manner.