Voluntary trade restrictions by foreign countries on their exports to the United States raise the price domestic consumers pay and also raise the price foreign consumers pay.

Two actions by the Fed during Alan Greenspan's term as chairman have been identified as possibly contributing to the financial crisis in 2008. Which of the following was one of those actions?

A) working in concert with the European Central Bank to stabilize the dollar / euro exchange rate B) financing the first Gulf War by printing money and generating rapid inflation C) decreasing the money supply to fight the possibility of disinflation D) the decision to keep the federal funds rate at 1 percent from June 2003 to June 2004

Suppose Quarto Inc produces and sells dresses in a perfectly competitive market. Which of the following would be the firm's profit-maximizing outcome?

a. The firm earns a total revenue of $250 if it produces 10 dresses at a total cost of $500. b. The firm earns a total revenue of $1,000 if it produces 20 dresses at a total cost of $800. c. The firm earns a total revenue of $3,000 if it produces 30 dresses at a total cost of $1,000. d. The firm earns a total revenue of $3,500 if it produces 40 dresses at a total cost of $2,000.