When the Fed engages in quantitative easing, it alters ______________________ and when the Fed makes open market purchases it alters _______________________
A) short-term interest rates; long-term interest rates
B) long-term interest rates; short-term interest rates
C) the required reserve ratio; income tax rates
D) income tax rates; the required reserve ratio
B
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In perfect competition, ________
A) there are restrictions on entry into the market B) firms in the market have advantages over firms that plan to enter the market C) only firms know their competitors' prices D) there are many firms that sell identical products
Which of the following is an example of an "implicit cost"?
A) Interest that could have been earned on retained earnings used by the firm to finance expansion. B) The payment of rent by the firm for the building in which it is housed. C) The interest payment made by the firm for funds borrowed from a bank. D) The payment of wages by the firm.