Which of the following lists two things that both increase the money supply?
a. the Fed buys bonds and lowers the discount rate.
b. the Fed buys bonds and raises the discount rate.
c. the Fed sells bonds and lowers the discount rate.
d. the Fed sells bonds and raises the discount rate.
A
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Suppose an individual has state-independent tastes and invests in risky stocks rather than safe bonds. We can infer that he must be risk loving.
Answer the following statement true (T) or false (F)
Hans can do 4 loads of laundry per hour, and he can type 6 pages per hour. Maria can do 12 loads of laundry per hour, and she can type 8 pages per hour. Hans’s opportunity cost of typing one page is:
A. 4 pages.
B. 6 pages.
C. 2/3 of a page.
D. 3/2 of a page.
E. impossible to compute without additional information.
The distinction between microeconomics and macroeconomics is
A) clearly drawn, and there is no overlap between them. B) determined by economists in a clear and concise manner. C) narrowly drawn, and microeconomic analysis often relies on macroeconomic tools. D) often blurred because aggregates are made up of individuals and firms.
Consumer sovereignty answers which central issue in economics?
a. How will goods be produced? b. Who will produce the goods? c. What goods will be produced? d. For whom will the goods be produced? e. By what method will the goods be produced?