Several years ago, a bookstore chain extended its closing time from 9 p.m. to 10 p.m. Now it is considering a further extension to 11 p.m. In making this marginal decision, the results of having gone from 9 p.m. to 10 p.m. are
A) no longer relevant to the current decision.
B) relevant if the marginal costs and benefits were unequal.
C) relevant since they are part of the calculation of total costs and benefits.
D) relevant if the marginal costs and benefits were equal.
A
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The theory that there is no predictable trends in securities prices is the
A) opportunity cost of capital. B) random walk theory. C) capital reinvestment. D) present value.
A commercial bank has excess reserves of $10,000 and a required reserve ratio of 20%. It grants a loan of $8,000 to a customer, who then writes out a check for $8,000 that is deposited in another bank. The first bank will find its reserves decrease by
A. $8,000. B. $1,600. C. $3,000. D. $2,000.
Goods A and B are complementary goods. An increase in the price of good A has occurred. In the market for good B this will lead to
A) an increase in price and a decrease in quantity. B) an increase in price and an increase in quantity. C) a decrease in price and a decrease in quantity. D) a decrease in price and an increase in quantity.
Refer to the information provided in Figure 28.4 below to answer the question(s) that follow.
Figure 28.4Refer to Figure 28.4. The demand for labor falls from D to D'. If firms enter into social, or implicit, contracts with workers not to cut wages, then the wage rate will remain at $10 and
A. employment will remain at 300 million. B. employment will fall to 150 million. C. employment will fall to 200 million. D. labor supply will decrease to restore the market to equilibrium.