An open-market purchase by the Federal Reserve injects excess reserves into the banking system and allows the money supply to expand

If Jessie studies economics for two hours instead of going to the movies with her friends, then

A) the benefit of studying is the missed movie. B) the opportunity cost of studying is the missed movie. C) Jesse definitely is making a rational choice. D) Jessie is ignoring a sunk cost. E) Jessie is not responding to any incentives.

What type of policy does the government adopt in dealing with government-inhibited goods?

A) It subsidizes their consumption. B) It subsidizes their production. C) It provides them as public goods. D) It taxes, regulates, or prohibits their use.