If a monopsony finds that its MRP is greater than its MFC, it:
a. is doing the right thing to maximize profits.
b. should hire fewer workers to increase profits.
c. should hire more workers to increase profits.
d. should pay the workers a lower wage.
e. should produce less output.
c
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Deregulation
a. Began in Europe in the 1960s b. Began in the United States in the late 1970s and early 1980s c. Did not spread to Europe d. Has been a failure e. Both b and c are correct
If the Fed desired to fix the euro/dollar exchange rate, they would have to:
A. maintain ample reserves of dollars. B. be willing to exchange dollars for euros whenever anyone asked. C. impose capital controls. D. get the European Central Bank to also agree to fixed exchange rates.
Which statement is false?
A. Most savings and loan associations were locked into low-interest-rate mortgages in the 1950s and 1960s. B. To get a bank charter, you need to demonstrate that your community needs a bank or an additional bank. C. Nearly all banks today are regulated by both the Federal Reserve and the FDIC. D. The FDIC would rather pay off depositors than be forced to find another bank to take over a failing institution. E. Money is created when someone takes out a bank loan.
Suppose a market is in equilibrium. The area below the market price and above the supply curve is:
A. total economic surplus. B. consumer surplus. C. producer surplus. D. the loss in total economic surplus.