Which of the following is the best example of a monopolistically competitive market?
A) The wheat market.
B) The electricity market.
C) The restaurant market.
D) The market for automobiles.
C
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Which of the following is not a component of the M2 money supply?
A) Cash in circulation B) Gold owned by the federal authorities C) Deposits in checking accounts D) Any issued traveler's checks E) All of the above.
Differences in marginal revenue products are the most important factor in explaining wage differences. Other factors that explain wage differences include all but one of the following. Which factor does not help explain differences in wages?
A) discrimination B) labor unions C) compensating differentials D) cognitive differentials
What would the Bank of England (England's Central Bank) do to raise the value of the British pound in terms of the euro?
a. It would simply announce its desired exchange rate for the British Pound, and the market forces of supply and demand would do the rest. No further action would be necessary. b. It has no influence over the pound exchange rate. c. It would buy British pounds and supply euros in the foreign exchange market. d. It would buy euros and supply British pounds in the foreign exchange market. e. It would sell dollars and buy euros.
Suppose there is a decrease in aggregate demand. If the Fed wants to stabilize output it could
a. buy bonds. These purchases also move the price level closer to its original level. b. buy bonds. However these purchases move the price level farther from its original level. c. sell bonds. These sales also move the price level closer to its original level. d. sell bonds. However these sales move the price level farther from its original level.