Recently, new discount window lending procedures set a penalty rate that is normally __________ short-term market interest rates
A) just below
B) above
C) approximately equal to
D) None of the above.
B
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A firm should hire more workers to increase its profits if
A) the marginal product of labor is greater than the wage the firm will pay these workers. B) there is enough capital and other resources for the workers to use. C) the demand for labor is elastic. D) the wage rate is less than the marginal revenue product of labor.
Sonny's Surfer Shop produces and sells custom surf boards. Assume that labor is the only input that varies for the firm. The firm's owner has determined that if she hires 10 workers, the firm can produce 10 surf boards per day. If she hires 11 workers, the firm can produce 12 surfboards per day. The firm sells each surfboard for $2,000 . and it pays each of its workers $200 per day. Which of the
following is correct? a. For the 11th worker, the value of the marginal product of labor is $400. b. For the 11th worker, the value of the marginal product of labor is $4,000. c. The firm should not hire the 11th worker since hiring this worker reduces profit. d. In order to justify hiring the 11th worker the firm will need to raise the price of a surfboard.
Professor Cowen says that _______ is one of the biggest personal and social costs of a recession.
A. reduced savings B. rising interest rates C. unemployment D. inflation
The figure above shows Ilene's budget line. The price of a can of cat food is $2. If the price of a can of cat food rises, her budget line will
A) rotate inward toward the origin. B) rotate outward away from the origin. C) shift leftward in a parallel manner. D) shift rightward in a parallel manner.