Which of the following would cause both the equilibrium price and equilibrium quantity of oysters (assume that oysters are a normal good) to decrease?
A) an increase in consumer income
B) an oil spill that sharply reduces oyster output
C) a decrease in consumer income
D) a technological advancement in the production of oysters
Answer: C
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Answer the following statements true (T) or false (F)
1. More than 50 percent of commercial banks in the United States belong to the Federal Reserve System. 2. If the Fed desires to increase check able deposits, it may lower the reserve requirement. 3. If the Fed desires to expand the money supply, it will raise the discount rate. 4. By buying government securities, the Federal Open Market Committee adds to member banks’ reserves. 5. The greater the level of excess reserves, the lower the Federal Funds rate will be.
A binding minimum wage tends to
a. cause a labor surplus. b. cause unemployment. c. have the greatest impact in the market for teenage labor. d. All of the above are correct.
The demand for a good or service is determined by
a. those who buy the good or service. b. the government. c. those who sell the good or service. d. both those who buy and those who sell the good or service.
The most important influence on a firm's demand for a factor of production is __________.
Fill in the blank(s) with the appropriate word(s).