Classical theory assumes:
a. Say's Law
b. flexible prices.
c. flexible wages.
d. flexible interest rates.
e. All of the above answers are correct.
e
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The major assets on a bank's balance sheet are its
A) checking and savings account deposits. B) loans, and checking and savings account deposits. C) reserves, loans, and checking account deposits. D) reserves, loans, and holdings of securities. E) reserves, checking and savings account deposits.
Consider the accompanying figure representing the labor market below.
If a minimum wage of $12 per hour is imposed in this labor market then worker surplus will ________ and employer surplus will ________.
A. stay the same; fall B. fall; fall C. rise; fall D. rise; stay the same
The Cournot theory of oligopoly is based on the assumption that each firm believes that rivals will:
A. increase their output whenever it increases its output. B. keep their output constant if it changes its output. C. decrease their output whenever it increases its output. D. randomly change output whenever it changes its output.
The rational outcome of a low-price guarantee policy is that:
A. both firms will sell at the low price. B. one firm will sell at a low price and the competitor will sell at a high price. C. both firms will sell at the high price. D. consumers will be better off.