A decrease in the reserve requirement ________ bank reserves and ________ the money supply
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
Answer: A
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If prices (as measured by the CPI) fell by one-half and nominal wages fell by one-third, what would happen to real wages?
a. They would fall by one-third b. They would remain unchanged c. They would decrease d. They would increase e. They would fall by one-half
A yellow dog contract is a(n)
a. signed contract by a worker that he/she will not join a union if hired b. signed contract by a worker that he/she will join a union if hired c. prolabor provision in a contract that only union members will be employed d. agreement by a union member that he/she will not join any other union e. agreement by a worker that he/she will not go on strike
The short run is a period of time in which
A) the quantity of at least one factor of production is fixed. B) the amount of output is fixed. C) prices and wages are fixed. D) nothing the firm does can be altered.
Consider the perfectly competitive firm in the above figure. What will the firm choose to do in the short-run and why?
A) shut down because the firm incurs an economic loss B) stay in business because the firm is making an economic profit C) stay in business because the firm's economic loss is less than fixed costs D) stay in business because it is making zero economic profit