Suppose the Fed increases the supply of money. What would happen to AD as a
result?
a. fall
b. rise
c. stay the same
d. depends on whether or not it is a leap year
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, b. rise
To maximize profits, a monopolist will charge a price that is:
Select one:
a. insufficient information
b. greater than MC
c. less than MC
d. equal to MC
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b. greater than MC
Assume that Bost, Incorporated sells game cartridges that can be used in a popular
home video system. Bost currently sells 300 cartridges per week and earns $500 in
profit. Bost's production manager calculates that the marginal cost of the next unit is
$5, while marginal revenue for one additional unit is $10. Based upon this info we
would conclude that:
a. Insufficient information
b. Bost should reduce their output
c. Bost's profit would rise to $505 by increasing output 1 unit
d. Bost's profit would rise to $510 by increasing output 1 unit
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c. Bost's profit would rise to $505 by increasing output 1 unit
Which of the following statements is false with regard to fixed interest rate loans?
, a. any of the other two could be correct
b. debtors prefer inflation to be higher than expected during the life of a loan
c. lenders prefer inflation to be higher than expected during the life of a loan
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c. lenders prefer inflation to be higher than expected during the life of a
loan
Which of the following would reduce the fed funds rate?
a. open market yawning
b. open market purchases
c. open market sales
d. open market breathing
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b. open market purchases
The typical consumer consumes the following basket: 5 corn dogs and 5 cokes. Now
suppose that prices of corn dogs were $3 each in 2000 and $4 each in 2001, and
prices of cokes were $1 each in 2000 and $2 each in 2001. What is the value of the CPI
in 2001, assuming 2000 is the base year?
a. 200
b. 175
c. 150
d. 100
Give this one a try later!
result?
a. fall
b. rise
c. stay the same
d. depends on whether or not it is a leap year
Give this one a try later!
, b. rise
To maximize profits, a monopolist will charge a price that is:
Select one:
a. insufficient information
b. greater than MC
c. less than MC
d. equal to MC
Give this one a try later!
b. greater than MC
Assume that Bost, Incorporated sells game cartridges that can be used in a popular
home video system. Bost currently sells 300 cartridges per week and earns $500 in
profit. Bost's production manager calculates that the marginal cost of the next unit is
$5, while marginal revenue for one additional unit is $10. Based upon this info we
would conclude that:
a. Insufficient information
b. Bost should reduce their output
c. Bost's profit would rise to $505 by increasing output 1 unit
d. Bost's profit would rise to $510 by increasing output 1 unit
Give this one a try later!
c. Bost's profit would rise to $505 by increasing output 1 unit
Which of the following statements is false with regard to fixed interest rate loans?
, a. any of the other two could be correct
b. debtors prefer inflation to be higher than expected during the life of a loan
c. lenders prefer inflation to be higher than expected during the life of a loan
Give this one a try later!
c. lenders prefer inflation to be higher than expected during the life of a
loan
Which of the following would reduce the fed funds rate?
a. open market yawning
b. open market purchases
c. open market sales
d. open market breathing
Give this one a try later!
b. open market purchases
The typical consumer consumes the following basket: 5 corn dogs and 5 cokes. Now
suppose that prices of corn dogs were $3 each in 2000 and $4 each in 2001, and
prices of cokes were $1 each in 2000 and $2 each in 2001. What is the value of the CPI
in 2001, assuming 2000 is the base year?
a. 200
b. 175
c. 150
d. 100
Give this one a try later!
