The identity stating that the total amount spent on final output equals the amount received for final output is known as the
A) equation of exchange.
B) circular flow identity.
C) identity equation.
D) fundamental law of economic
Answer: A) equation of exchange.
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Options on individual stocks are referred to as
A) stock options. B) futures options. C) American options. D) individual options.
If the federal funds rate is below the equilibrium federal funds rate, then the supply of reserves would be __________ than the demand for reserves and the banks would try to __________ reserves causing the federal funds rate to fall
A) greater than; lend B) greater than; borrow C) less than; lend D) less than; borrow
The features of the U-Form of firm organization are
a. workers have trouble developing a high degree of functional expertise b. employees can easily share information across positions within a division c. employee evaluation is hampered by managers having different skill sets than workers d. coordination across divisions is simple and does not take much management time
Labor unions may attempt to raise wage rates by:
A. increasing the supply of labor. B. forcing employers, under the threat of a strike, to pay above-equilibrium wage rates. C. decreasing the demand for labor. D. increasing the price of complementary resources.