Answer the following questions from the chapter. The study about how the Federal

Question

Answer the following questions from the chapter.

The study about how the Federal Reserve sets the interest rate is an example of which type of economics: Select one: a. Microeconomics b. Macroeconomics c. Industrial Economics d. Public Finance

If price increases and quantity decreases, which of the following may have happened? Select one: a. supply increased and shifted right b. supply decreased and shifted left c. demand increased and shifted right d. demand decreased and shifted left

In a market where production creates a negative externality this can be addressed by regulators through taxation because: Select one: a. The tax penalizes consumers and therefore decreases the market demand for the good b. The tax is able to make the true cost of production more transparent to producers c. The tax is an effective way to increase production of the negative externality d. The tax lowers the social cost back down to align with the private cost

Explanation / Answer

a) "Macroeconomics" The Fed setting interest rate is an example of macroeconomics study.

b) "B"

Supply decreased and shifted to the left. In that situation, the quantity will decrease and the price will increase.

c) The tax penalizes the consumer and therefore decrease the market demand for goods. The answer is "A".

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.