Which of the following statements is true?
a. A tariff is a physical limit on the quantity of a good allowed to enter a country.
b. An embargo is a tax on an imported good.
c. A quota is a law that bars trade with another country.
d. When a nation exports more than it imports it is running a balance of trade surplus.
d
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The Fed tends not to use discount policy as its principal tool in influencing the money supply since
A) discount loans do not affect the money supply. B) it does not have as much control over discount loans as it has on open market operations. C) it is prohibited from doing so by an act of Congress. D) it prefers to use reserve requirements.
Unlike oligopoly, other market structures are such that
a. profits are usually low or nonexistent b. firms in those structures need not observe each other to make price and production decisions c. collusion within the structures is easy to accomplish because firms try to avoid competition d. prices tend toward a stable equilibrium e. there are more firms in every other structure