A higher required reserve ratio _________ the value of the simple deposit multiplier
A. Increases
B. Decreases
C. Eliminates
Ans: B. Decreases
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Which of the following is a difference between a monopolistically competitive market and a monopoly in the long run?
A) Firms in a monopolistically competitive market earn zero economic profits in the long run, while a monopolist usually earns positive economic profits in the long run. B) Firms in a monopolistically competitive market earn zero economic profits in the long run, while a monopolist incurs losses in the long run. C) Firms in a monopolistically competitive market charge a price higher than marginal cost in the long run, while a monopolist charges a price equal to marginal cost in the long run. D) Firms in a monopolistically competitive market charge a price lower than marginal cost in the long run, while a monopolist charges a price equal to marginal cost in the long run.
A firm that generates zero economic profit usually faces
A) negative business profit. B) zero business profit. C) positive business profit. D) business profit equal to half the total revenue.
If workers become less productive, which of the following would happen in the labor market?
a. Labor supply would decrease. b. Labor supply would increase. c. Labor demand would decrease and labor supply would increase. d. Labor demand would increase and so would labor supply. e. Labor demand would decrease.
If aggregate demand shifts left, then in the short run
a. the price level and real GDP both rise. b. the price level rises and real GDP falls. c. the price level falls and real GDP rises. d. the price and real GDP both fall.