When the Federal Reserve buys Treasury bonds, it is called

A) a swap.
B) an open market operation.
C) a bond roll-over.
D) bonding.


B

Economics

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American consumers learn that grape consumption can reduce the incidence of heart disease. Everything else being equal, this will cause the

A. price of grapes to fall and decrease the quantity supplied. B. supply of grapes to fall and the quantity demanded to increase. C. quantity supplied of grapes to fall. D. demand curve for grapes to shift to the right and increase the quantity supplied.

Economics

If the punishment is _________, or the likelihood of getting caught is _________, the cost associated with breaking a ban may not be high enough to change the trade-off that consumers face.

A. not severe; low B. severe; high C. severe; low D. not severe; high

Economics

If Germany purchased more goods and services abroad than it sold abroad last year, then it had

a. positive net exports which is a trade surplus. b. positive net exports which is a trade deficit. c. negative net exports which is a trade surplus. d. negative net exports which is a trade deficit.

Economics

Suppose a firm uses workers and office space to produce output. The firm is locked into a year-long lease on its office space, but it can easily vary the number of employee-hours it uses each day. The accompanying table describes the relationship between the number of employee-hours the firm uses each day and the firm's daily output. Each unit of output sells for $2, the hourly wage rate is $14, and the rent on the office space is $50 per day.Employee-Hours Per DayOutput Per Day0014048091201516023200 What is the marginal cost of production between 80 and 120 units of output each day?

A. $70 B. $14 C. $1.75 D. $1.40

Economics