|
8 H* t/ G* H* w; ?4 f% o
Question 36
4 L3 Z5 l& ^+ m( AWhich 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?) G; n% J6 |7 E9 m" T
Most frequently used Least likely expansionary
! X1 P, E- j6 X0 C# G! d% bA) Open market operations Increasing the reserve requirement- e6 b: y( ?6 V% x
B) Open market operations Decreasing the discount rate$ I- M! O/ U. r+ u+ g# S
C) Discount rate Increasing the reserve requirement
- w \- G. Y. h- h0 u: N4 TD) Discount rate Decreasing the discount rate& q! |% h. o/ }+ ~
; E; B2 ^& `( [1 e$ QQuestion 37( d. h& w4 \7 r' B1 C: l
If a minimum wage is set above the equilibrium wage in the labor market, what is the most likely effect on labor supply?
$ w* G. }& ?; {A) Firms will use less than the economically efficient amount of capital.+ k, n- P# F8 _* e9 {2 }* @
B) There will be excess demand for labor and unemployment will decrease.
0 y$ F9 L5 L+ z G+ I# U% ]C) The minimum wage will have no effect on the equilibrium.
4 z4 O( ~) b) E) X8 O3 ^) Z2 XD) There will be excess supply of labor and unemployment will increase.
# V, s9 h4 E: M' Z 4 M6 \: ? o, H+ v
Question 38
- u5 D6 H' [2 z6 P [# g- I7 s+ P) P; qWhich of the following statements about price takers and price searchers is most accurate?0 ~( K9 @7 O; `9 ^
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.! ^7 A1 E# }; K" i
B) Price takers maximize profits at the point price = marginal revenue = marginal cost.
& i) k( s. d. m R6 ~$ ^- \, Y. rC) In the long run, both price takers and price searchers will have zero economic profits.
$ q8 Q; j2 W( G5 Q kD) The potential allocative inefficiency of a price searcher engaged in monopolistic competition includes the social cost of producing where price = marginal cost.
8 ^* i9 q! ^5 I3 L! ~
+ L$ r9 W# f! G; Q& q1 hQuestion 390 f& M, @7 \* s; W; n$ W
A generational imbalance is best described as:
4 p$ j/ u$ X/ d/ w ~! ~* HA) accounting for the taxes owed by and the benefits owed to each generation.; p' G) `6 n6 y" S
B) the present value of future government deficits and how future generations deal with this problem.
5 J6 n4 E9 v5 ^, fC) a difference between the present value of government benefits promised to current taxpayers and the taxes paid by current taxpayers.9 s1 s; ]$ m g/ B1 u. }: k+ z
D) one generation being promised more government benefits than another generation.
7 c7 K: W! }( i, ]
. Z4 k' p* u; M/ vQuestion 409 C7 F0 q" O3 I: q4 P6 M/ D% B. X
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?& ?& l3 X: i4 _5 V! D- A( L! A2 {; E
6 R! x# `! U9 U" l Output Price
9 f$ `' y, X/ l! h) qA) Increase Decrease( ]5 v0 X+ q4 ?1 M, O6 ^1 {
B) Increase Increase' i6 @6 R l% ?9 Z4 _( E ?
C) Decrease Increase! O8 L! k3 c! ~
D) Decrease Decrease |
|