Monetarists think that the Fed should use ________ as a target when conducting monetary policy
A) the money supply
B) the federal funds rate
C) the Treasury bill rate
D) the inflation rate
E) the unemployment rate
Answer: A
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Using the principle of vertical equity, it is easy to argue in favor of _____
a. sumptuary taxation b. progressive taxation c. regressive taxation d. none of the above
Consider a cable TV company which is subject to an average-cost pricing regulation. If the number of subscribers decreases:
A. the company will have to operate at a smaller profit unless it suffers an economic loss. B. the company will have to charge a relatively low price as the demand curve facing the firm shifts to the left. C. the company will charge more per customer as its average cost increases. D. None of these
When the supply of labor to a firm is perfectly elastic the marginal factor cost will equal the
A) market price of the product. B) wage rate. C) marginal physical product. D) wage rate times the number of workers.
Mr. Ramirez lost his job at a steel mill due to competition from cheaper imported steel. He would be classified as
A. cyclically unemployed. B. not in the labor force. C. frictionally unemployed. D. structurally unemployed.