When unions cause wages to rise above the equilibrium wage,
a. a surplus of labor results.
b. a shortage of labor results.
c. the demand for labor rises.
d. the demand for labor falls.
a. a surplus of labor results.
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From time to time, the Federal Reserve buys back government bonds from the private sector through a process called
A) voluntary redemption procedures. B) backflip bond investments. C) open market purchases. D) bond recall procedures.
The current chair of the Board of Governors of the Federal Reserve System is
A) Janet Yellen. B) Alan Greenspan. C) Ben Bernanke. D) Paul Volcker.
Suppose the supply of coal is perfectly inelastic, and the price elasticity of demand for coal is -0.4
If the government imposes a binding price ceiling for coal at a price that is 20 percent below the market equilibrium price, what is the impact of this policy on the market quantity? A) Excess demand equals 80 percent of the market equilibrium quantity B) Excess demand equals 8 percent of the market equilibrium quantity C) Excess demand equals 16 percent of the market equilibrium quantity D) The policy does not affect the market quantity
How are Treasury bond prices affected when the interest rate falls?
A. The purchaser of the bond needs to spend less money to obtain a given number of dollars of interest per year, so the price of the bond must decrease. B. The purchaser of the bond needs to spend more money to obtain a given number of dollars of interest per year, so the price of the bond must increase. C. The purchaser of the bond needs to spend more money to obtain a given number of dollars of interest per year, so the price of the bond must decrease. D. The purchaser of the bond needs to spend less money to obtain a given number of dollars of interest per year, so the price of the bond must increase.