A price floor set above the equilibrium price is binding
a. True
b. False
Indicate whether the statement is true or false
True
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The money supply in Macroland is currently 2,500, bank reserves are 200, currency held by public is 500, and banks' desired reserve/deposit ratio is 0.10. Assuming the values of the currency held by the public and the desired reserve/deposit ratio do not change, if the Central Bank of Macroland wishes to increase the money supply to 3,000, then it should conduct an open-market ________ government bonds.
A. sale of 500 B. purchase of 250 C. purchase of 50 D. sale of 50
For a monopoly producing any output level greater than one, the average revenue curve:
A. lies below the demand curve. B. lies above the marginal revenue curve. C. is the same as the marginal revenue curve. D. lies above the demand curve.
Both the Bush and Obama administrations used tax cuts as a remedy to the housing “bubble.”
Answer the following statement true (T) or false (F)
Given the data in Scenario 14.3, how much labor should the firm employ if labor costs $30 a unit?
A) 3 units of labor B) 4 units of labor C) 5 units of labor D) 6 units of labor E) 7 units of labor