Refer to Figure 4-1. If the market price is $2.50, what is the consumer surplus on the second ice cream cone?
A) $0.50 B) $1.50 C) $3.00 D) $10.50
A
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The figure above shows the market for bank reserves in Futureland
If the Bank of Futureland lowers the target federal funds rate by 1 percentage point, the central bank will conduct an open market ________ of government securities of ________ to ________ the supply of reserves. A) purchase; $25 billion; decrease B) sale; $25 billion; increase C) sale; $75 billion; decrease D) purchase; $75 billion; increase E) purchase; $25 billion; increase
Under a system of flexible exchange rates, a decrease in demand for a nation's currency in the foreign exchange market will: a. make it less expensive for foreigners to buy the nation's goods
b. make it more expensive for the nation to import goods. c. cause the nation's balance on current account to shift toward a deficit. d. all of the above
A duty of economists at the Department of Labor is to
a. analyze data on workers. b. schedule federal holidays. c. enforce the nation's antitrust laws. d. All of the above are correct.
An externality is an example of
a. a corrective tax. b. a tradable pollution permit. c. a market failure. d. Both a and b are correct.