Which of the following was true of the actions of the Federal Reserve in response to the recession of 2008?
a. The Fed shifted toward a highly restrictive monetary policy in 2008, which was a major cause of the recession.
b. The Fed continued to focus only on price stability and therefore it expanded the money supply at a slow and steady rate throughout the recession.
c. The Fed introduced several new procedures for the conduct of monetary policy and substantially increased bank reserves as the recession worsened.
d. The Fed continued to purchase and sell only U.S. Treasury bonds when conducting open market operations to control the money supply.
C
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Suppose there are four firms in a market and each of them sell differentiated products. Does it make sense for these firms to engage in a price war? Why or why not?
What will be an ideal response?
Markets will tends to produce too little of activities that generate positive externalities
a. True b. False
Intellectual property includes
a. all of the following b. literary, artistic and musical works, and scientific inventions c. computers, calculators, and word processors d. desks, bookshelves, and notebooks e. office space, computers, and telephones
The marginal product of labor is the
a. additional output produced when one more worker is hired b. amount of output associated with labor inputs c. maximum amount of output produced by a given set of inputs d. maximum profit "produced" by selling a firm's output e. additional cost associated with an additional unit of labor