The most important influence on a firm's demand for a factor of production is __________.
Fill in the blank(s) with the appropriate word(s).
the demand for the final product
You might also like to view...
If the exchange rate appreciates, then the
A) quantity of dollars demanded increases. B) demand for dollars decreases. C) quantity of dollars demanded decreases. D) demand for dollars increases. E) supply of dollars decreases.
If transactions costs are high, the economic pie may not be maximized
Indicate whether the statement is true or false
When property rights are assigned and transactions costs are low,
A) all costs and benefits are taken into account by the transacting parties so the transaction is efficient. B) externalities will result in market failure. C) the marginal social benefit curve shifts leftward and the marginal social cost curve does not shift. D) the marginal social cost curve shifts rightward and the marginal social benefit curve does not shift. E) the marginal social cost curve shifts rightward and the marginal social benefit curve also shifts rightward.
By raising the legal reserve requirement, the Federal Reserve System
a. forces banks to hold funds from repaid loans as required reserves instead of lending the funds again b. creates many new lending opportunities for cash-strapped financial intermediaries c. actually creates new money because it allows more borrowers to come into banks to demand loans d. seeks to increase the potential money multiplier e. encourages member banks to loan more than what is legally feasible