Assuming no externalities exist, if a good's price is more than its marginal cost, then the benefits consumers derive are ________ than the cost of resources needed to produce it and ________ should be produced.
A. greater; more
B. less; more
C. less; less
D. greater; less
Answer: A
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If capital inflows decrease due to higher interest rates in other countries and large amounts of import spending, there will be:
A) upward pressure on a country's exchange rate. B) downward pressure on a country's exchange rate. C) no pressure on a country's exchange rate. D) none of the above.
What percentage of all banks in the United States belong to the Federal Reserve System?
A) 5% B) 38% C) 75% D) 90%
In the classical model, the supply-determined nature of output is illustrated by a(n)
a. horizontal aggregate supply curve. b. vertical aggregate supply curve. c. upward sloping aggregate supply curve. d. downward sloping aggregate supply curve.
The difference between the marginal expenditure and the wage is greater when the supply curve of labor is
A) less elastic at the monopsony optimum. B) more elastic at the monopsony optimum. C) more elastic than the demand curve. D) The difference does not depend on any elasticity.