If the reserve requirement were 15% percent, the value of the monetary multiplier would be
A. 5.50.
B. 8.54.
C. 7.32.
D. 6.67.
Answer: D
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A minimum wage law prohibits employers from paying workers less than a specified hourly wage. If the minimum wage is above the equilibrium wage:
A. there will be an excess demand for labor. B. there will be an excess supply of labor. C. employment levels will not fall. D. it creates a price ceiling.
What is one of the criticisms of measuring unemployment?
a. People who are not employed and not seeking work are counted as unemployed. b. People who are self-employed but not reporting their income to tax authorities are counted as employed. c. People who report that they are looking for work, but are not looking very hard, are counted as unemployed. d. People who do not have jobs and would be available to work but have gotten discouraged at the lack of available jobs in their area and stopped looking, are counted as unemployed.
The federal government is most likely to oppose
A. the purchase of a firm in danger of bankruptcy by a successful firm. B. a merger between two firms in a perfectly competitive industry. C. the purchase of one oligopolist by another in an industry with contestable markets. D. a merger between two firms in a three-firm industry.
Economic fine-tuning is the (usually frequent) use of
A) monetary policy that is based on a predetermined steady growth rate in the money supply to counteract even small undesirable movements in economic activity. B) only fiscal policy to counteract even small undesirable movements in economic activity. C) monetary and fiscal policies to counteract even small undesirable movements in economic activity. D) fiscal policy that both balances the budget and counteracts even small undesirable movements in economic activity.