When the prevailing market wage is above equilibrium:
A. the difference between the quantity supplied and the quantity of labor demanded is unemployment.
B. the surplus of labor is the amount of unemployment in the market.
C. unemployment occurs.
D. All of these are true.
Answer: D
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A decrease in the supply of dollars on the foreign exchange market, all else equal, will result in:
A) appreciation of the U.S. dollar and depreciation of the foreign currency. B) appreciation of the U.S. dollar and appreciation of the foreign currency. C) depreciation of the U.S. dollar and depreciation of the foreign currency. D) depreciation of the U.S. dollar and appreciation of the foreign currency.
If the national debt is growing no faster than GDP,
a. the government will have to raise taxes b. the nation's standard of living will fall c. government investment spending will be negative d. the government can pay interest on the debt without having to raise taxes e. the government will be unable to pay interest on the debt
A . If Orde Windgate withdraws $4,00 . from the First Bank of Chicago and deposits it in a new account at the Second Bank of Chicago, explain how much money the Second Bank of Chicago can create if the legal reserve requirement is 10 percent. b. Will this transaction increase the amount of money that the banking system as a whole can create? Explain
If a firm perceived that the other firm in an implicit pricing agreement dropped its price in an attempt to gain market share, then its most likely response would be to:
A. merge with the other firm. B. engage in a price war. C. raise price to punish the other firm. D. keep its price the same.