When a firm faces a labor supply curve that is upward sloping, the firm must
A) offer a higher wage if it wishes to hire more workers.
B) pay a wage that exceeds the value of marginal product.
C) pay a wage that does not exceed the minimum wage.
D) maximize the amount of labor that it hires.
A
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Given that most banks have positive gap and negative durations, banks prefer
A) lower market interest rates. B) higher market interest rates. C) higher market fixed rates but lower market floating rates. D) either higher or lower market interest rates since interest rates have little effect on bank profits.
Horizontal mergers involve firms in different industries
a. True b. False
Suppose that, at an official ticket price of $500, there are 6,000 Justin Timberlake fans wanting to attend his concert, but only 4,000 ticketed seats are available. Which one of the following statements is then TRUE?
A. There will be a surplus of tickets. B. The market clearing price of the tickets is more than $500. C. The market clearing price of the tickets is less than $500. D. There will be scalpers outside the arena selling tickets for $500.
If the inflation rate is 3% and the real interest rate is 4%, then the nominal interest rate is around
A. 12%. B. 7%. C. 3%. D. 1%.