If a labor market that was previously competitive becomes controlled by a monopsony, the wage rate ________ and employment ________
A) rises; increases
B) falls; decreases
C) rises; decreases
D) falls; increase
B
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Assume the United States is the "domestic" country and China is the "foreign" country. Which of the following might increase the real exchange rate between the United States and China?
A) an increase in the price level in the United States. B) an increase in the price level of China C) a depreciation of the dollar D) an appreciation of the yuan
A customer of Bank A writes a $20,000 check for a new car, which the car dealer deposits in his bank, Bank B. Which of the following statements pertaining to this transaction is most true?
A. Neither Bank A's nor B's reserves will change B. Banks A's reserves will decrease by the required reserve rate times $20,000 and Banks B's reserves will increase by (1- required reserve rate) times $20,000 C. Bank B's reserves will decrease and Bank A's reserves will increase by $20,000 D. Bank A's reserves decrease by $20,000 and Bank B's reserves increase by $20,000
A game in which the first player has the power to confront the second player with a take-it-or-leave-it offer is the:
A. repeated prisoner's dilemma. B. ultimatum bargaining game. C. matching pennies game. D. Nash bargaining game.
The Fed took action in late 2008 to significantly decrease the federal funds rate. This action is best considered:
A. neither offensive nor defensive actions. B. both offensive and defensive actions. C. a defensive action. D. an offensive action.