________ by the Fed means that the Fed ________
A) Credit easing; bought private securities from financial institutions
B) Credit easing; made loans directly to home buyers
C) Credit easing; tried to lower long-term interest rates
D) Quantitative easing; required private banks to increase their lending to home buyers
E) Quantitative easing; decreased in the required reserve ratio
A
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The price effect of a price decrease by a monopolist refers to:
A) the loss in revenue due to the price reduction. B) the increase in sales due to the price reduction. C) the increase in revenue because of an increase in sales. D) the decrease in the demand for labor due to the lower price of the final product.
Suppose that the interest rate paid to savers increases. As a result, Tom wishes to save more. This suggests that, for Tom,
A) the substitution effect is greater than the income effect. B) the income effect is greater than the substitution effect. C) utility maximization is not occurring. D) future consumption is a luxury.
The above figure shows the cost curves for a competitive firm. If the market price is $15 per unit, the firm will earn profits of
A) $0. B) $4. C) $40. D) $160.
Which of the following transactions would be included in the GDP of the United States?
A. McDonald's sells hamburgers in Russia. B. Coca Cola produces soft drinks in England. C. Honda produces cars in Ohio. D. Ford Motor Company produces cars in Mexico.