Which factor of production earns most income in the United States?
A) capital
B) labor
C) money
D) entrepreneurship
B
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If a union negotiates and obtains a wage rate above the competitive wage rate,
A) it must find a way to make workers more productive. B) employment in the union sector will increase relative to employment in the nonunion sector. C) it must find a way to ration jobs among the excessive number of workers who wish to work in the union sector. D) unemployment will increase in the nonunion sector relative to the union sector.
The rate of interest charged by the Federal Reserve to member banks for reserves borrowed from the Fed is known as the:
a. federal funds rate. b. discount rate. c. repurchase rate. d. Q-ceiling rate.
For a depository institution, reserves are:
a. assets on the balance sheet. b. loans to individuals and businesses. c. borrowings from the central bank. d. liabilities it owes to customers. e. checkable deposits.
Collusive arrangements tend to collapse when
a. there is a small number of sellers b. the benefits of cheating are great and the costs are low c. inflation is high d. interest rates are low e. there is a powerful price leader