A decrease in the marginal factor cost of labor will
A) lead to an decrease in the quantity demanded of labor.
B) induce a firm to hire fewer workers.
C) induce a firm to hire more workers.
D) cause the value of the marginal product of labor to decrease.
Answer: C
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Foreclosure is when a:
A. bank takes ownership of a property because the property owner cannot make the mortgage payments due. B. person is forced to sell his home for less than what he paid for it. C. person is forced to sell his home for less than what it is currently worth. D. person is forced to sell his home for less than what he still owes for it.
Refer to Figure 10.1. Suppose the individual is initially at point b. Based on the figure, the individual is currently:
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A. a saver, which is his optimal choice.
B. a borrower, which is his optimal choice.
C. a saver, though borrowing would increase his utility.
D. a borrower, though saving would increase his utility.
Which of the following economic models is untestable?
a. Demand and supply model of a product market. b. Monopoly model of market power. c. Edgeworth box model of exchange. d. Capital asset pricing model.
There is an inverse relationship between the required reserve ratio and the money supply
Indicate whether the statement is true or false