Figure 4-17
Refer to . If the government imposes a price ceiling in this market at a price of $5.00, the result would be a
a.
shortage of 20 units.
b.
shortage of 10 units.
c.
surplus of 20 units.
d.
surplus of 10 units.
a
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Suppose a firm uses workers and office space to produce output. The firm is locked into a year-long lease on its office space, but it can easily vary the number of employee-hours it uses each day. The table below describes the relationship between the number of employee-hours the firm uses each day and the firm's daily output. Each unit of output sells for $2, the hourly wage rate is $14, and the rent on the office space is $50 per day.Employee-HoursPer DayOutputPer Day0014048091201516023200When the firm uses 9 employee-hours, its total labor cost each day is:
A. $30 B. $126 C. $56 D. $84
Our "dual" banking system refers to
A) commercial banks and thrifts. B) federal and state chartering and supervision of commercial banks. C) stockholder-ownership and depositor-ownership of depository institutions. D) banks that are members and non-members of the Fed.
Which of the following is NOT an example of transactions costs?
A) high interest rates B) lawyers' fees C) brokerage commissions D) minimum investment requirements
If good B is a complement to good A, then a decrease in the price of B
a. increases the quantity demanded of A b. decreases the demand for A c. increases the demand for A d. decreases the quantity demanded of A e. will cause the demand for B to increase