For this question, assume that the economy is initially operating at the natural level of output. An increase in consumer confidence will cause
A) a reduction in the real wage in the medium run.
B) an increase in the real wage in the medium run.
C) no change in the real wage in the medium run.
D) ambiguous effects on the real wage in the medium run.
C
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Over time, the hierarchy of firms has tended to move from
A) upstream to downstream. B) hierarchical to non-hierarchical. C) lateral to parallel. D) big to small to big again.
If a bank has legal reserves of $1 million, a reserve requirement of 10 percent, and check able deposits of $6 million, it can extend its check able deposits by
a. $1 million. b. $2 million. c. $4 million. d. $10 million.
If you get a job and are never required to join the union, this is known as a(n)
A) closed shop. B) open shop. C) agency shop. D) union shop.
Refer to the diagram and assume that price increases from $2 to $10. The coefficient of the price elasticity of supply (midpoint formula) relating to this price change is about:
A. 5 and supply is elastic.
B. 1 and supply is unit elastic.
C. .25 and supply is inelastic.
D. 2.5 and supply is elastic.