Which of the followingcorrectlyis the money multiplier?
a. The required reserve ratio.
b. 1/(1 – the required reserve ratio).
c. 1/(required reserve ratio).
d. 1/(1 – MPC).
c
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The difference between the sale value of the product and the value of the inputs that went into it is called the:
A. value-added of that stage of production. B. value of the final product. C. profit margin. D. mark up.
Which of the following is correct?
a. There is consensus among economists that unions are good for the economy. b. There is consensus among economists that unions are bad for the economy. c. There is consensus among economists that, on net, unions have almost no impact on macroeconomic variables. d. There is no consensus among economists about whether unions are good or bad for the economy.
The corporate ethics problem is basically a problem of controlling:
A. opportunism. B. incentives. C. shirking by the managers. D. CEO salaries.
Transaction costs are best defined as the
A) various costs of different goods and services. B) cost of one good in terms of another; that is, the price of apples in terms of oranges. C) costs involved in borrowing money from someone, that is, the interest that must be paid for the use of someone else's money. D) costs associated with the time and effort necessary to make an exchange.