Refer to the diagram for the federal funds market. If the Fed wants to raise the federal funds rate by one-half of a percentage point, it should:
A. act to increase reserves by $50 billion.
B. act to reduce reserves by $50 billion.
C. pursue an expansionary monetary policy.
D. buy bonds from banks and the public.
B. act to reduce reserves by $50 billion.
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A perfectly competitive firm sells 15 units of output at the going market price of $10. Suppose its average fixed cost is $15 and its average variable cost is $8. Its contribution margin (i.e., contribution to fixed cost) is
A) $30. B) $150. C) $105. D) Cannot be determined from the above information
Marginal product is represented by:
A. the x-axis of the total production curve. B. total product minus the total cost. C. the slope of the total production curve. D. total revenue minus total cost.
Statistical correlation always implies causation
a. True b. False Indicate whether the statement is true or false
Which of the following represents an illegal control of prices?
A. Colluding B. Following the leader without explicit agreements to do so C. Following the price determined by an analysis of supply and demand D. Accepting a government mandated price without contesting it