A beneficial oil-price shock increases labor demand. What happens to current employment and the real wage rate?
A. Both employment and the real wage rate would increase.
B. Both employment and the real wage rate would decrease.
C. Employment would increase and the real wage would decrease.
D. Employment would decrease and the real wage would increase.
Answer: A
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Arnie's Airlines decides to offer different fares to different customers for the same tri
A) wants to convert consumer surplus to deadweight loss. B) wants to help some buyers with lower fares. C) has different costs for the same flight. D) wants to convert consumer surplus to economic profit. E) wants to convert producer surplus to consumer surplus.
As of October 2012, which of the following was true?
A) deposits of foreign governments and international organizations > bank reserves > currency in circulation B) currency in circulation > bank reserves > deposits of foreign governments and international organizations C) bank reserves > currency in circulation > deposits of foreign government and international organizations D) currency in circulation > deposits of foreign governments and international organizations > bank reserves
For a monopolist, the price effect:
A. is the increase in revenues from selling a greater quantity at a lower price. B. is always outweighed by the quantity effect. C. is the decrease in revenues from selling a greater quantity at a lower price. D. always outweighs the quantity effect.
The Federal Reserve System is built around
a. four regional banks. b. six regional banks. c. twelve district banks. d. one bank with several branches.