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Question 36& D, _& A. D% ~/ Z2 J- I9 ~
Which of the following actions by the Federal Reserve is the most frequently used and which action would least likely be used for expansionary monetary policy?
# U" |3 @0 O _) x6 s3 V. \9 XMost frequently used Least likely expansionary* p) F, X1 h3 K2 d6 ` U
A) Open market operations Increasing the reserve requirement6 @. {! |' o/ E! u/ K% x" S/ g
B) Open market operations Decreasing the discount rate
3 ?+ k8 S& E4 ~" p- v: eC) Discount rate Increasing the reserve requirement: B! b" ^( W3 ~# m+ c9 s4 T
D) Discount rate Decreasing the discount rate/ e6 Q6 w" G, J) P, r8 ?
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Question 37
' z/ g1 ^7 e7 K3 B, C o U @If a minimum wage is set above the equilibrium wage in the labor market, what is the most likely effect on labor supply?
0 x6 f. ~9 y9 PA) Firms will use less than the economically efficient amount of capital.+ A t( A. A3 ^5 l0 q9 i1 M
B) There will be excess demand for labor and unemployment will decrease.
( j! y: }3 E* p" d, zC) The minimum wage will have no effect on the equilibrium.
, M; A2 e1 f7 x! KD) There will be excess supply of labor and unemployment will increase.% B* f: v8 g$ q" X0 j
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Question 383 L) U2 b( a; ?- ?9 e' ] q& ~ S
Which of the following statements about price takers and price searchers is most accurate? i. r/ Y0 F6 p, S- w d5 d) r
A) In the long run, both price takers and price searchers maximize profits at the quantity corresponding to the minimum point on the average total cost curve.+ P. m! ?3 f1 w3 [5 @2 g
B) Price takers maximize profits at the point price = marginal revenue = marginal cost.
, b+ i9 ~8 \8 ~- }* g3 `" OC) In the long run, both price takers and price searchers will have zero economic profits.
+ U0 k5 J& j" e6 Z% M# yD) The potential allocative inefficiency of a price searcher engaged in monopolistic competition includes the social cost of producing where price = marginal cost." z7 b: h1 f6 X, Z2 n& Q
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Question 39
& m3 k( Q V% {; Z- P5 }+ j k1 MA generational imbalance is best described as:, Q/ I5 H9 g0 c3 W- @( E
A) accounting for the taxes owed by and the benefits owed to each generation. V- V; b. q% d2 r0 `% K5 A( E
B) the present value of future government deficits and how future generations deal with this problem.
; i1 |: s- v0 l' PC) a difference between the present value of government benefits promised to current taxpayers and the taxes paid by current taxpayers.* h% ^' E. B) n( `0 l
D) one generation being promised more government benefits than another generation.2 {. _0 T0 v& m! p
. W" v% k% q; n( D# U! g `Question 40
$ R8 V0 k/ v/ W [, r2 FIf the government regulates a natural monopoly and enforces an average cost pricing, what are the effects on output quantity and price compared to an unregulated natural monopoly?1 y- v) h( @( M8 y X$ g# N0 b
0 m4 i/ M+ }6 b! H4 d4 @- N Output Price
5 C2 [/ w% O- Y# {7 uA) Increase Decrease
/ F& f* r% u/ r7 qB) Increase Increase; f' w, W. }+ x' ]
C) Decrease Increase
" {9 b* c9 R& M7 ?D) Decrease Decrease |
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