The field of economics that focuses on the actions of individual agents within the economy, like households, workers, and businesses is:
A) Global economics
B) Macroeconomics
C) Microeconomics
Ans: C) Microeconomics
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The two kinds of yields used in the Treasury bill market are the
A) coupon equivalent yield and yield on a discount basis. B) face yield and discount yield. C) nominal yield and real yield. D) yield to maturity and coupon equivalent yield.
Because of a late night out with friends, Alyssa decided to sle ep in rather than attend her 7:50 a.m. economics class. According to economic analysis, her choice was
a. irrational, because economic analysis suggests you should always attend classes that you have already paid for. b. irrational, because oversleeping is not in Alyssa's self-interest. c. rational only if Alyssa has not missed any other classes during the current semester. d. rational if Alyssa values the additional sleep more highly than the extra benefit she expects to receive from attending the class.
Assume a perfectly competitive industry is in long-run equilibrium at a price of $75. If this industry is a constant-cost industry and the demand for the product decreases, long-run equilibrium will be reestablished at a price
A. greater than $75. B. of $75. C. less than $75. D. either greater than or less than $75 depending on the magnitude of the decrease in demand.
If a $1 million open market purchase by the Fed generates a new deposit at a bank that immediately causes the bank's reserves held at the Fed to increase by $1 million, then the T-account effects are that the bank's assets and liabilities ________ by
$1 million and that the Fed's assets and liabilities ________ by $1 million. A) increase; decline B) decline; decline C) increase; increase D) decline; increase