During the Great Depression, one reason the Federal Reserve did not respond forcefully was the "free gold problem," which refers to the idea that ___
a. gold was fleeing Nazi Germany, thus undermining the Fed's attempt to control the money supply
b. gold was essentially free because people had excess supplies of currency that could be converted into gold
c. the Fed claimed that almost all its gold was tied up by reserve requirements (there was little free so it could not increase the money supply)
d. gold was essentially free because silver, which existed in abundance, could be converted into gold at the fixed rate of 16:1
c. the Fed claimed that almost all its gold was tied up by reserve requirements (there was little free so it could not increase the money supply)
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Marginal cost can be expressed as the ration of the price of labor and the Marginal Product of Labor
a. only when labor is held constant. b. only when labor is the only variable input. c. wether labor is held constant or not. d. never.
A competitive market is characterized by
a. the absence of entry barriers b. many buyers with a single seller c. imperfect information d. a differentiated product
Suppose you borrow $500 from your bank to pay for a guitar. This is an example of
A) direct financing. C) moral hazard. B) indirect financing. D) transaction costs.
Relating to the Economics in Practice on page 338: A number of agencies in the federal government, including the EPA, use the social cost of carbon as their internal carbon fee. In 2015, this price they were paying was ________ per ton of carbon.
A. $18 B. $39 C. $62 D. $100