Everything else held constant, in the market for reserves, when the federal funds rate is 3%, raising the discount rate from 5% to 6%
A) lowers the federal funds rate.
B) raises the federal funds rate.
C) has no effect on the federal funds rate.
D) has an indeterminate effect on the federal funds rate.
C
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A person has a comparative advantage in producing a particular good if that person
A) has higher productivity in producing it than anyone else has. B) can produce it at lower opportunity cost than anyone else can. C) has less desire to consume that good than anyone else has. D) has more human capital related to that good than anyone else has.
Legal entitlement to scientific discoveries, inventions, innovations and intellectual property
A) reduces the incentive to invest in research and development. B) results in an equal distribution of income and profits. C) encourages technological advancements. D) protects production on the basis of tradition, social customs and habits.