Excess capacity occurs in long-run equilibrium under monopolistic competition so that:
a. price is less than marginal cost
b. price exceeds minimum average cost.
c. marginal revenue exceeds price.
d. all of the above occur.
b
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In the classical model, which of the following is treated as independent of the interest rate?
a. the quantity of loanable funds demanded by government b. the quantity of loanable funds demanded by businesses c. the total quantity of loanable funds demanded d. household saving e. the total quantity of loanable funds supplied
Which of the following is a store of value?
a. Passbook savings deposit b. Federal Reserve notes c. Debit card d. Each of the answers is a store of value.
If the minimum wage law sets a wage floor below the equilibrium wage in the market for unskilled labor, then the
A) minimum wage will create a surplus of unskilled labor. B) minimum wage will create a shortage of unskilled labor. C) minimum wage will not impact the unskilled labor market. D) unskilled labor market will change, but we cannot be certain how.
Systemic risks inhere mainly in the largest financial institutions.
Answer the following statement true (T) or false (F)