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Question 36) G7 i* E: J! j# U- {
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?" N" i' C/ H" q1 W% h
Most frequently used Least likely expansionary/ \& e. j) B) o# N
A) Open market operations Increasing the reserve requirement" f* @, ?0 ]: u$ ?5 P, v
B) Open market operations Decreasing the discount rate
4 l) k7 x, d0 F% G- z5 QC) Discount rate Increasing the reserve requirement9 s3 W* b. b4 z# |/ @9 A
D) Discount rate Decreasing the discount rate
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Question 37
" Y+ Y* i" ?( y* r! V$ {0 |If a minimum wage is set above the equilibrium wage in the labor market, what is the most likely effect on labor supply?
! W% ?+ L k7 K9 R( Y7 CA) Firms will use less than the economically efficient amount of capital.+ D' M1 B( ?( ?4 g+ a% Y
B) There will be excess demand for labor and unemployment will decrease.
0 o1 a8 \' D0 M y( \' d! iC) The minimum wage will have no effect on the equilibrium.% u) D! U3 t: T3 Y! X1 V
D) There will be excess supply of labor and unemployment will increase.
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# c% o5 U, a9 J. M/ w8 D* V; lQuestion 384 r( \, w( N0 c' J" K
Which of the following statements about price takers and price searchers is most accurate?
* W8 E5 W% @1 N/ a1 xA) 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.9 c+ R- N" S/ R% o7 A
B) Price takers maximize profits at the point price = marginal revenue = marginal cost.
8 O. B2 N2 q" M1 |5 O ?C) In the long run, both price takers and price searchers will have zero economic profits.
8 w- f. U1 R7 `+ X5 m0 P BD) The potential allocative inefficiency of a price searcher engaged in monopolistic competition includes the social cost of producing where price = marginal cost.8 Q/ v2 I( D# a$ _
+ C' o3 Z$ a3 _- B& yQuestion 39
" s" C/ R8 \5 DA generational imbalance is best described as:4 P" k8 n1 x0 {. i& V0 q6 V
A) accounting for the taxes owed by and the benefits owed to each generation.
- j+ q, X G, i' g7 QB) the present value of future government deficits and how future generations deal with this problem.
& P8 ?6 y7 \* u/ U- ]1 nC) a difference between the present value of government benefits promised to current taxpayers and the taxes paid by current taxpayers.: V' X/ X. G+ I( {
D) one generation being promised more government benefits than another generation.
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) t9 j. m$ c& k/ D+ KQuestion 40, z; _" G ]2 T8 W; [
If 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?
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, D- o, X; x1 _4 Y7 ] Output Price8 [/ M' y+ E: \, F. \4 g# J
A) Increase Decrease" x8 A) h1 R" R# Z0 M1 N& f; d! V# j$ o
B) Increase Increase
1 y0 { h! J$ r) \9 [C) Decrease Increase7 W3 u: Z, o% M3 E3 x0 J3 G
D) Decrease Decrease |
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