Other things equal, when the Fed raises the reserve requirement, the banking system's excess reserves will fall, the deposit expansion multiplier will decline, and the money supply will decrease
a. True
b. False
Indicate whether the statement is true or false
True
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When leisure is an inferior good, the wage elasticity of labor supply is always positive.
Answer the following statement true (T) or false (F)
Depletion of tropical rainforests is an example of
a. a negative externality b. the use of variable technology c. adverse selection d. the use of fixed technology e. a clearly defined property right
The value of the marginal product is equal to the marginal revenue product under perfect competition in the product market because:
a. price is equal to average revenue. b. price is equal to average cost. c. marginal revenue is equal to marginal cost. d. price is equal to marginal revenue. e. average revenue is equal to average cost.
The law of increasing opportunity cost says that:
A) opportunity costs of production always tend to increase. B) increases in wages cause increases in the opportunity costs of production. C) as output increases for one good on its production possibilities curve, the opportunity cost of additional units of the other good will be greater and greater. D) along a production possibilities curve, as output increases in the production of one good, the opportunity costs of additional units of the other good will be less and less.