The teal book is the Fed research document containing A) the forecast of national economic variables for the next three years. B) forecasts of the money aggregates conditional on different monetary policy stances. C) information on the state of the economy in each Federal Reserve district. D) both A and B. E) A, B and […]
Refer to Scenario 3. The average total cost of 5 units of output is: A) $8. B) $10. C) $29. D) $39. ANSWER D
Refer to Scenario 3. The average variable cost of producing three units of output is: A) $15. B) $25. C) $41.67 (approximate). D) $75. ANSWER B
Assume that when price is $20, quantity demanded is 9 units, and when price is $19, quantity demanded is 10 units. Based on this information, what is the marginal revenue resulting from an increase in output from 9 units to 10 units? A) $20 B) $19 C) $10 D) $1 ANSWER C
Holding large amounts of bank capital helps prevent bank failures because A) it means that the bank has a higher income. B) it makes loans easier to sell. C) it can be used to absorb the losses resulting from bad loans. D) it makes it easier to call in loans. ANSWER C
The fast-food industry in the U.S. consists of many firms, but despite that it can still be viewed as an oligopoly because the top few firms control a significant share of the market. Indicate whether the statement is true or false ANSWER TRUE
________ work in the secondary markets matching buyers with sellers of securities. A) Dealers B) Underwriters C) Brokers D) Claimants ANSWER C
A credit market instrument that pays the owner a fixed coupon payment every year until the maturity date and then repays the face value is called a A) simple loan. B) fixed-payment loan. C) coupon bond. D) discount bond. ANSWER C
Although reserve requirements and the discount rate are not actually set by the ________, decisions concerning these policy tools are effectively made there. A) Federal Reserve Bank of New York B) Board of Governors C) Federal Open Market Committee D) Federal Reserve Banks ANSWER C
If a good is price elastic, an increase in price will increase total revenues. Indicate whether the statement is true or false ANSWER FALSE
