Other things equal, one would predict that market wages would be relatively high when
a. the supply of labor is high.
b. the demand for labor is low.
c. the supply of labor is low.
d. Both (a.) and (b.) are correct
c
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The concept of mean reversion is defined by
a. the tendency of profits to revert to zero b. the tendency of costs to revert to zero c. the tendency of economic profits to revert to zero d. the tendency of profits to revert to negative
The exchange rate is:
A. the rate at which banks can borrow from the Fed. B. the slope of the investment function. C. the price at which one currency trades for another currency. D. the rate at which one can translate money into consumption goods.
A commercial bank can expand its excess reserves by:
A. demanding and receiving payment on an overdue loan. B. buying bonds from a Federal Reserve Bank. C. buying bonds from the public. D. paying back money borrowed from a Federal Reserve Bank.
If an economy's production possibility frontier is negatively sloped and "bowed outward" from the origin, then the opportunity cost of producing a good
A. decreases as more of that good is produced. B. increases as more of that good is produced. C. remains constant as more of that good is produced. D. remains constant as less of that good is produced.