In analyzing the market for a particular good, the most appropriate size of the market to consider
a. is the global market
b. is a local market
c. is a national market
d. is a state-wide market
e. depends on the purpose of the analysis
E
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The figure above shows the market for fast food restaurant employees in a college town in a small nation to the East. The local Taco Bell pays its workers $12 an hour. This wage rate is
A) designed reduce the unemployment rate. B) an effort to increase the demand for labor. C) illegal because the equilibrium wage rate is $6 an hour. D) an efficiency wage aimed at reducing employee turnover. E) the actual equilibrium wage rate.
An increase in wages raises the opportunity cost of leisure and leads to an increase in the quantity of labor supplied
Indicate whether the statement is true or false
If the rate of inflation in a given time period turns out to be higher than lenders and borrowers anticipated, then the effect will be:
a. no change in the distribution of wealth between lenders and borrowers. b. a net gain in purchasing power for lenders relative to borrowers. c. a redistribution of wealth from borrowers to lenders. d. a redistribution of wealth from lenders to borrowers.
The Federal Reserve can alter the size of the money supply by changing reserves or changing reserve requirements
a. True b. False Indicate whether the statement is true or false