A flour mill holding exclusive contracts to 95% of the wheat in a large geographic area may operate as a flour producing monopoly locally because
A) the mill has a very inelastic supply curve.
B) the mill is a natural monopoly.
C) the mill controls a key input.
D) the government will declare it a monopoly.
C
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The total adult population of an economy is 175 million, the number of employed is 122 million, and the number of unemployed is 17 million. The percentage of adults who are not in the labor force is
A. 30.3%. B. 13.9%. C. 20.6%. D. 25.3%.
Other things being equal, an increase in the labor force resulting from increased immigration tends to: a. increase wages
b. decrease wages. c. decrease the demand for labor. d. increase the demand for labor.
Banks historically have used the discount window:
A. sparingly, because it is often seen as a sign of financial trouble for a bank. B. often, because it provides instant access to needed funds for banks. C. often, because its low interest rate can serve as a source of profit for banks. D. only during times of economic boom, when there is a high demand for loans.
If the reserve requirement was 15% and a bank customer makes a deposit of $500, the initial result would be:
a. a $75 increase in required reserves and a $425 increase in excess reserves. b. a $425 increase in required reserves and a $75 increase in excess reserves. c. a $75 increase in required reserves and a $3,333 increase in excess reserves. d. a $3,333 increase in required reserves and a $425 increase in excess reserves.