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15. The interest rate used by the ECB that is analogous to the discount rate for the Federal Reserve is the

16. A country that uses inflation targeting must have what type of exchange rate regime?

17. The structure of the ECB was modeled on the Bank of England.

True

False

18. An increase in which of the following would shift the supply of reserves up?

15. The interest rate used by the ECB that is analogous to the discount rate for the Federal Reserve is the

16. A country that uses inflation targeting must have what type of exchange rate regime?

17. The structure of the ECB was modeled on the Bank of England.

True

False

18. An increase in which of the following would shift the supply of reserves up?

The interest rate used by the ECB that is analogous to the discount rate for the Federal Reserve is the A. repo rate. B. marginal lending rate. C. federal funds rate. D. none of the above.

Say that the equilibrium price rose and equilibrium quantity fell. What would you say was the most likely cause?

There was (a) a decrease (b) a increase (c) no change in demand and (a) a decreae (b) a increase (c) no change in supply.

Say that the equilibrium price rose and equilibriumremained constant. What would you say was the most likely cause?

There was (a) a decrease (b) a increase (c) no change in demand and (a) a decreae (b) a increase (c) no change in supply.

There is an increase in availability of alternative fuels through research and development. Which of the following correctly captures the effect of this change on the market for gasoline? A. Both equilibrium quantity and price will increase. B. Both equilibrium quantity and price will decrease. C. Equilibrium quantity will increase, but equilibrium price will decrease. D. Equilibrium quantity will decrease, but equilibrium price will increase

A. Why must price cover average costs if the firm is to continue operating? B. Describe the role that easy entry and exit play in competitive markets over the long run. C. Why are marginal revenue and price equal for the perfectly competitive firm? D. Describe the reasons why an industry's costs might increase in the long run. Why might they decrease over the long run?

1. Why, if competitive firms are earning economic profits in the short run, are they unable to earn them in the long run?

2. In this chapter we suggested that whenever market price fell below average variable costs, the firm will shut down. At that point, revenue is not covering its variable costs and the firm is losing more money than it would if it shut down and lost its fixed costs. Clearly, shutting the firm down is more complicated than that. Under what circumstances might the firm continue to operate even though prices are below average variable costs?

3. The opening of formal Cuban relations with the United States has led to greater trade between the two countries, especially in perfectly competitive products such as sugar, tobacco, and oranges. Explain what is likely to happen in the market for these agricultural products under increased trade with Cuba and how that might affect individual farmers in the United States.

4. Which of the following statements correctly describes the role that easy entry and exit play in competitive markets over the long run?

which trade protects small business workers: a) free trade, b) fair trade, c) equal trade, d) sustainable trade, e) humane trade

The world trade organization

a. advocates for protection of domestic industries against cheap imports

b.is an ecoterrorist group

c.enforces intertnational trade agreemetns

d. protects workers against exploitation of large multinational corporations

e. protects consumers agaisnt exploitation of larege multicultural croproations

Q1: A national crime lab used to prevent criminal activity nationwide is an example of a

Select one:

a. transfer payment.

b. negative externality.

c. private good.

d. public good.

e. positive externality.

Question 2

Which of the following statements regarding human rights and international trade is correct?

Select one:

a. Free trade advocates believe trade decreases job growth in LDCs

b. The WTO estimates that free trade has led to an increase in poverty rates in LDCs

c. Free trade advocates believe it is efficient to exploit workers in LDCs

d. Protectionists believe free trade leads to exploitation of workers in LDCs

e. Protectionists believe free trade leads to increased opportunity for poor workers

Question 3

Commercial banks

Select one:

a. operate in both the primary and secondary financial markets.

b. operate only in cities with major financial markets.

c. began in Germany.

d. began as goldsmiths that provided receipts to customers who stored their gold with the goldsmith.

e. started by offering credit to wealthy landowners.

Question 4

The unemployment rate will not fall to zero because of

Select one:

a. welfare.

b. all of the choices.

c. cyclical unemployment.

d. frictional unemployment.

e. voluntary unemployment.

A market in perfect competition is in equilibrium. Let the demand's price elasticity be -1.25 and the price elasticity of the offer is 0.25. If a tax of $ 10 per unit is introduced, who will then carry the largest part of the tax burden?

A. Consumers, since demand is relatively more elastic than the supply

B. Consumers, then demand. is relatively more inelastic than the supply

C. Manufacturers, as the supply is relatively more elastic than demand.

D. The producers, as the supply is relatively more inelastic than demand.

Please show and explain

What is the basic purpose of the World Trade Organization? A. To collect information on the imports and exports of nations and issue a world report on the conditions of trade B. To monitor trade between the three major trading nations of the world economy, the United States, Germany, and Japan C. To oversee trade agreements reached by member nations and rule on trade disputes among these nations D. To conduct meetings for major multinational corporations so that they can increase the amount of investment and trade in the global economy

Which of these is responsible for the transformations required by the production process?

Which of the following is a "support" activity in the value chain?

Select one:

a. Service

b. Marketing and sales

c. Outbound logistics

d. Resource procurement

6. in the long run:

(A) total fixed cost equals to zero (B)total variable costs equal zero (C) there two variable inputs (D) Marginal costs equal zero.

In long-run competitive market equilibrium, price equals _____ and economic profit is _____.

a) minimum average variable cost; greater than zero

b) minimum average total cost; zero

c) maximum marginal cost;zero

d)minimum fixed cost; greater than zero

In a monopolistically competitive industry, in long runequilibrium

A) firms produce at minimum average total cost and make zeroeconomic profit.
B) firms produce at minimum average total cost and make positiveeconomic profit.
C) firms produce at greater than minimum average total cost andmake positive economic profit.
D) firms produce at greater than minimum average total cost andmake zero economic profit.

Which of the following is NOT a characteristic of long-run equilibrium for a perfectly competitive firm? Select one: a. Economic profit is zero. b. Price is greater than long-run average cost. c. The firm produces the output level at which long-run avera minimum. d. Price is equal to long-run marginal cost.

Which of the following is NOT a characteristic of long-run equilibrium for a perfectly competitive firm? Select one: a. Economic profit is zero. b. Price is greater than long-run average cost. c. The firm produces the output level at which long-run average cost is at its minimum. d. Price is equal to long-run marginal cost.

Which of the following is NOT a characteristic of long-runequilibrium for a perfectly competitive firm?

Possible answers
Price is greater than long-run average cost
Price is equal to long-run marginal cost
Economic profit is zero
The firm produces the output level at which long-run average costis at its minimum

If a monopolistically competitive market is in long-run equilibrium, each firm

a. charges a price which is higher than long-run marginal cost.

b. earns economic profits.

c. produces that level of output at which long-run average cost is minimum.

When the price level increases the purchasing power of money:

As the price level ________, the purchasing power of money ________. Select one:

a. increases; increases

b. increases; decreases

c. decreases; decreases

d. decreases; stays the same

1) What happens when the price level decreases?

A. Consumption decreases.

B. Interest-sensitive spending, such as planned investment, increases.

C. The purchasing power of accumulated saving decreases.

D. The demand for money increases.

If the money wealth, interest rate, and international effects reduce the quantity of aggregate demand by 3 percent when the price rises by 6 percent and the multiplier is 2, then the slope of the aggregate demand curve is:

A ) -1/2.

B ) -1.

C ) -2.

D ) -3.
_____________________________________

An increase in the price level:

A ) increases the purchasing power of money, leading to lower interest rates, which increases investment.

B ) increases the purchasing power of money, leading to higher interest rates, which decreases investment.

C ) decreases the purchasing power of money, leading to lower interest rates, which increases investment.

D ) decreases the purchasing power of money, leading to higher interest rates, which decreases investment.

____________________________________________________________________

The marginal propensity to consume is given by

The interest rate on a bond is

QUESTION 48

Which of the following is most liquid?

2 points

QUESTION 49

Which of the following is not directly counted in GDP?

2 points

QUESTION 50

Which of the following price indices comes closest to measuring the cost of living of the typical household?

Choose the BEST answer

Which of the price indices below measurs the cost of a basket of goods comprising of all the components of GDP?

a- GDP Deflator

b- Consumer Price Index

c- Core CPI

If people bought the same market basket of goods as the average consumer again and again:

Which one of the following uses a "market basket" in its calculation?

As the prices of goods and services increase, the value of money:

a. stays the same.

b. increases.

c. decreases.

d. increases initially and then decreases.

e. decreases initially and then increases.

As the number of available substitutes increases, the price elasticity of demand for a good:

Initially the market for labor is in equilibrium, and then laborers suddenly are willing to work more hours. In that case, equilibrium wage __________ and the quantity of workers employed__________. a. decreases; decreases b. increases; increases c. decreases; increases. d. increases; decreases

If the demand for a good is elastic, then total revenue
a. increases as price increases.
b. remains constant as quantity demanded increases.
c. increases as price decreases.
d. decreases as quantity demanded increases.
e. decreases as price decreases.

Suppose that ABC Beer Brewer faces a linear demand curve and that the current price for its beer is set at a point where the price elasticity is 1.60. If ABC Beer Brewer increases the product price:

A) the demand becomes more elastic and total revenue increases.

B) the demand becomes less elastic and total revenue increases.

C) the demand becomes less elastic and total revenue decreases.

D) the demand becomes more elastic and total revenue decreases.

E) the demand becomes more elastic and total revenue remains the same.