What is marginal factor cost? How is it related to the supply curve of an input?
What will be an ideal response?
Marginal factor cost is the cost of using an additional unit of an input. In the case of labor, this equals the wage. For a price taker in input markets, the marginal factor cost equals the price of the input and is the supply curve of the input too.
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A reduction in the required reserve ratio has the instant effect of:
a. Increasing bank reserves. b. Increasing excess reserves. c. Increasing bank shareholders' equity. d. None of the above is correct. e. Increasing the monetary base.
The transcontinental railroads were completed in the 25 years
A. before the Civil War. B. after the Civil War. C. after 1890. D. after the 20th century began.
Based on the information in the table, what quantity of reserves would the Federal Reserve have had to inject into the economy in 1932 to prevent the money supply from falling, given that the public increased the amount of currency it held and that banks increased the reserve-deposit ratio? Currency held by public (in billions)Reserve-deposit ratioBank reserves (in billions)Money supply (in billions)December 1931$4.590.095$3.11$37.3December 1932$4.820.109$3.18$34.0
A. $0.89 billion B. $0.66 billion C. $3.54 billion D. $0.30 billion
Suppose the firms in a five-firm industry have market shares of 30, 30, 20, 10, and 10 percent, respectively. The Herfindahl index for the industry is:
A. 1,900. B. 2,400. C. 90. D. 10,000.