Refer to Figure 9.6. Before this policy was implemented, producer surplus was
A) $10.
B) $2000.
C) $4000.
D) $6000.
E) $12000.
B
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Which of the following is the best example of second-degree price discrimination?
a. A car salesperson's attempts to discover and charge the highest price that the customer is willing to pay. b. A sub shop that gives you a half-price sandwich on every sixth visit. c. Manufacturers' use of discount coupons printed in Sunday newspapers. d. Polaroid cameras and film.
The rational expectations hypothesis is a theory that states that
A) people make their economic plans by using all available past and present information and their understanding about how the economy operates. B) individuals can predict the future perfectly, at least with respect to macroeconomic variables like the interest rate and inflation. C) people make their economic plans in an irrational, intuitive manner. D) people make their economic plans by relying on the policy statements made by the President and by leaders in Congress.
Which of the following is NOT included in the M2 measure of money?
A) checking deposits B) traveler's checks C) time deposits D) shares of the stocks of large companies
A margin requirement is
a. the minimum amount of reserves the Fed requires a bank to hold b. the interest rate that the Fed requires from banks who borrow from it c. the marginal interest rate on loans made by banks to other banks d. the maximum percentage of the price of a stock that can be borrowed from a bank, with the stock offered as collateral e. an appeal by the Fed to banks, asking for voluntary compliance with the Fed's policies