For a monopsonist, the marginal factor cost is always:
a. equal to the wage rate.
b. less than the wage rate.
c. greater than the wage rate
d. the same as the labor supply.
e. the same as the labor demand.
c
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At the current level of output, the marginal social cost of sandwiches exceeds the marginal social benefit of sandwiches. Compared to the allocatively efficient quantity we are producing too ________ sandwiches and too ________ of other goods
A) many; little B) many; much C) few; little D) few; much
At any quantity, the marginal factor cost is always
A) parallel to the marginal revenue product. B) below the labor supply curve. C) above the labor supply curve. D) above the labor demand curve.
When we say that the financial crisis can be viewed as a balance sheet problem, this is descriptive of
A) banks' assets being greater than their liabilities. B) banks possessing assets that are declining in value, resulting in banks approaching insolvency. C) banks having low leverage ratios. D) banks engaging in regulatory capital arbitrage. E) none of the above
Assume the reserve requirement is 25 percent, demand deposits are $500 million, and total reserves are $32 million. If the reserve requirement is decreased to 20 percent, the banking system will experience
A. Excess reserves equal to $68 million. B. Excess reserves equal to $32 million. C. No change in the lending capacity. D. A deficiency of required reserves equal to $68 million.