If a union establishes by collective bargaining a wage rate that is above a competitive market equilibrium wage rate, then
A) an excess quantity of labor will be supplied.
B) a shortage of labor will result.
C) there will be an increase in total employment.
D) management will want to substitute labor for machinery.
Answer: A) an excess quantity of labor will be supplied.
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If the required reserve ratio is .10, demand deposits are $200 million, and total reserves are $40 million, then excess reserves are
A) $20 million. B) $40 million. C) $400 million. D) $2,000 million.
IBM undertook a massive restructuring program to decentralize into six smaller decision-making groups in order to reduce economies of scale
a. True b. False
The fact that it takes time for government to take action, even after a problem has been diagnosed, is one reason for the occurrence of:
A. inside lags. B. outside lags. C. crowding out. D. the multiplier effect.
The difference between mercantilism and feudalism is that under mercantilism:
A. the invisible hand played a more important role than the government. B. nation-states ruled by kings who coordinated the economic activity emerged. C. economic rather than social and political forces made the central economic decisions. D. merchants played a more important political role than kings.