When the Federal Reserve carries out open market operations, it announces in advance the effect it wishes to have on the federal funds rate
a. True
b. False
Indicate whether the statement is true or false
True
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When an economic unit limits the scope of its productive efforts instead of trying to produce everything it needs, it is engaging in
a. exchange. b. comparative production. c. specialization. d. self-sufficiency.
The law of increasing costs holds that the opportunity cost:
a. of a good decreases as the quantity of the good produced increases. b. of a good is proportional to the resources used in its production. c. of a good increases as more of the good is produced. d. of a good does not change with the resources used its production. e. changes as more of the good is produced.
Which of the following provides the best example of the winner's curse?
a. Sports teams bidding on free agents of uncertain abilities. b. Loyal consumers buying six packs of a popular soft drink at the grocery store. c. Employers paying skilled and experienced workers with considerable job tenure a premium wage. d. An investor estimating the value of his fixed deposit.
At very high levels of output, total cost tends to:
A. decrease at an increasing rate. B. increase at a constant rate. C. increase at an increasing rate. D. increase at a decreasing rate.