To achieve its goal of price stability, the Federal Reserve uses as its operational goal the ____ and
_ ___ set an official and formal target for the inflation rate.

• A.core CPI; has
• B.core CPI; has not
• C.CPI; has

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If the average cost of producing 9 sweaters is $6.50 and the marginal cost of producing the 10th sweater is $6.75, then the average cost of producing 10 sweaters will:

• A.increase.
• B.decrease.
• C.increase by 25 cents.

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The significance level in hypothesis testing refers to the probability that we will:

• A.Reject the null when it is true.
• B.Accept the alternative when it is true.
• C.Fail to reject the null when it is false.

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To calculate the cash ratio, the total of cash and marketable securities is divided by:

• A.current liabilities
• B.total liabilities
• C.total assets

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The height of a supply curve reveals

• A.the maximum price suppliers are willing to accept for a unit of a good.
• B.the opportunity cost of producing an additional unit of a good.
• C.the producer surplus associated with supplying an additional unit of a good.

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