Tag: Economics – Others

Open-market operations refer to
Multiple Choice
the purchase or sale of government securities, as well as collateralized money loans, by the Fed.
the specifying of loan maximums on stock purchases.
central bank lending to commercial banks.
purchases of stocks in the New York Stock Exchange.

Under the Article 2 the standard measure of damages for the buyer for breach of a sales contract by the seller is the difference between:
the market price at the time of tender “the cover price” and the original contract price
contract price and resale price of particular goods

Use the exhibit to answer the questions 12–15.The consumer must choose between buying cookies and pie. The consumer’s income is $100. Suppose that the price of a cookie falls from $5 to $2. A cookie is _______.a. an inferior goodb. a normal goodc. a Giffen goodd. none of the answer choices

Assume that, due to intense competition among firms, no restaurant food delivery service is making a profit. Zero (economic) profits in this situation is an example of
High supplier power
High threat from substitutes
High level of rivalry among existing firms
Low barriers to entry
High buyer power

The international financial market is composed of two interrelated systems called the ◻ and the ◻
international capital market; foreign exchange market
international capital market; foreign goods market
foreign goods market; international services market
foreign goods market; foreign exchange market

Why did Malthus believe that checks on population growth are necessary?
Group of answer choices
To allow more technological advancements
To stop families from having more than one child
To maintain a balance between population size and food supply
To ensure constant economic growth for wealthy nations

The following utility function is provided for changes in assets (i.e., x = change in monetary payoffs).
u(x) = 1 – e
-x/100
for -1000 ≤ x ≤ 1000
Determine if the decision maker should take a bet in which they will win $100 with probability p and $50 with probability (1-p).
p = 1/2
p = 2/3

Which of the following is true about marginal cost?
a. It is the additional cost of producing one more unit of output.
b. It is the total cost of producing all units of output.
c. It is the average cost of producing all units of output.
d. It is the difference between total revenue and total cost

Which of the following are the predictable effects of a binding price floor? (Check all that apply.)Deadweight lossShortagesSellers allocating goods by some other mechanism than priceIncreased consumer welfareGreater difficulty for sellers to find customersSurplusesIncreased allocative efficiency
Deadweight loss
Shortages
Sellers allocating goods by some other mechanism than price
Increased consumer welfare
Greater difficulty for sellers to find customers
Surpluses
Increased allocative efficiency

If a nation’s goods exports are $55 billion, while its goods imports are $50 billion, we can conclude with certainty that this nation has a
positive balance on its current account.
positive balance on goods and services.
balance of payments surplus.
balance of trade on goods surplus.