Which of the following will create the largest increase in the money supply?
A. the Federal Reserve sells bonds and the banks choose to hold more excess reserves
B. the Federal Reserve buys bonds and the banks choose to hold less excess reserves
C. the Federal Reserve buys bonds and the banks choose to hold more excess reserves
D. the Federal Reserve sells bonds and the banks choose to hold less excess reserves
Answer: B
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Which kinds of jobs are migrating from the United States to less developed countries?
a. manufacturing jobs only b. manufacturing, IT, and computer jobs c. IT and computer jobs only d. medical and legal jobs
The goal of the perfectly competitive firm is to
A) maximize total revenue. B) maximize total profits. C) minimize AFC. D) minimize ATC.
The principle of diminishing returns to capital states that if the amount of labor and other inputs employed is held constant, then the greater the amount of capital in use the:
A. the more an additional unit of capital adds to production. B. less is produced. C. the less an additional unit of capital adds to production. D. less production is wasted.
Figure 14.4 represents the market for used 12 megapixel digital cameras. Suppose buyers are willing to pay $400 for a plum (high-quality) used digital camera and $200 for a lemon (low-quality) used digital camera. If buyers believe that 50% of used digital cameras in the market are lemons (low quality), what percent of used digital cameras sold will actually be lemons?
A. 25% B. 50% C. 75% D. 100%