Other things being equal, which of the following would increase the market demand for labor?
A. A decrease in the cost-effectiveness of labor relative to other inputs.
B. A decrease in the market demand for the firm's output.
C. A fall in the wage rate.
D. An increase in the marginal productivity of labor.
Answer: D
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Refer to Table 18.1. M2 in this simple economy equals
A) $1,050. B) $4,050. C) $4,550. D) $5,100.
When Keisha receives a flu vaccination, the additional benefit enjoyed by Keisha's friends is the
A) marginal private benefit. B) marginal external benefit. C) marginal social benefit. D) private benefit. E) marginal private cost.
Targeting the federal funds rate allows the Fed some ability to control bank reserves and thus the money supply. Explain how each of the following tools allows the Fed to fine-tune its control of bank reserves
a. Conducting open market operations b. Changing the discount rate c. The ability to pay interest on reserves d. The Term Deposit Facility
In common value auctions
a. Bidder do not know the value of the object being sold b. Each bidder makes the same estimate of the value of the good c. All bidders know the estimates of the others d. The true value of the item differs across bidders