When the Fed buys a U.S. bond in the open market
A. its action has no effect on the total reserves or the money supply because the check it writes increases reserves at one bank but they fall at another.
B. its action expands total reserves and the money supply.
C. total reserves increase by the amount of the purchase but the money supply stays the same.
D. its action contracts total reserves and the money supply.
Answer: B
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In Zimbabwe and Namibia, a limited number of permits to hunt elephants are sold to hunters, and the revenue from the permits is shared with local residents
This gives the residents a financial incentive to ________, and as a result, the elephant populations have ________ in those countries. A) stop protecting elephants from poachers; dwindled B) preserve elephant habitat; disappeared C) stop protecting elephants from poachers; grown D) protect elephants from poachers; rebounded
Who gains from international trade?
A) only the exporting nation B) only the importing nation C) both the importing and the exporting nations D) neither the importing nor the exporting nations E) The gain depends on which nation gets to keep the total revenue from the sale.
A few decades ago, there were hardly any Subway restaurants in India. Now, they are present in almost every big city. This is an outcome of:
A) fair trade union practices. B) traditionalism. C) the protectionist policies adopted by the Indian government. D) globalization.
The winner's curse is more likely
a. when there is only one bidder b. when demand for the good being auctioned is increasing c. when the value of the good being auctioned is common knowledge d. when the value of the good being auctioned is uncertain e. when the marginal cost of information is low