If the wage rate rises, then the firm's long-run marginal costs change, which in turn affects the firm's output level and its employment of labor. This phenomenon is known as
a. the substitution effect.
b. the scale effect.
c. the regressive-factor effect.
d. the factor-price effect.
b. the scale effect.
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Regulation Q was responsible for the drop in importance of __________ as a source of bank funds
A) time deposits B) transactions deposits C) savings deposits D) equity
An ATS account
A) converts a corporation's checking account balance at the end of the day into an overnight repurchase agreement. B) is the name given to NOW accounts outside of New England. C) are negotiable certificates of deposit of less than $100,000. D) were used during the Great Depression by depositors who had lost faith in conventional checking accounts.
The condition of scarcity:
a. cannot be eliminated. b. prevails in poor economies. c. prevails in rich economies. d. All of these.
Demand pull inflation occurs when a nation's:
a. Aggregate demand rises, causing rising prices and rising unemployment. b. Aggregate demand rises, causing rising prices and falling unemployment. c. Aggregate demand rises, which leads to a decrease in aggregate supply and an increase in prices. d. Aggregate supply falls, causing rising prices and rising unemployment.