Currently, the Federal Reserve earns approximately $30 billion of interest annually on its holdings of government bonds. Only a small portion of these earnings is required to cover the Fed's operating costs. The remainder of these earnings is
a. distributed to the member banks of the Federal Reserve system.
b. invested in corporate stocks held by the Fed.
c. returned to the U.S. Treasury.
d. loaned to commercial banks.
C
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When a country allows trade and becomes an exporter of a good,
a. consumer surplus and producer surplus both increase. b. consumer surplus and producer surplus both decrease. c. consumer surplus increases and producer surplus decreases. d. consumer surplus decreases and producer surplus increases.
Because it is generally difficult for economists to user experiments to generate data, what must they generally do?
a) do without data b) use whatever data the world gives them c) select a committee of economists to make up data for all economists to use d) use hypothetical, computer-generated data
Suppose the short-run supply curve is a straight line of slope +1 that intersects the origin. The long-run supply curve will be
A) horizontal. B) steeper. C) shallower. D) vertical.
A firm ________ in the short-run has an incentive to expand its long-run scale of operation.
A. earning positive profits B. that shuts down C. breaking even D. making a loss