Which of the following statements is true?
A) The demand curve for money balances represents a direct relationship between the quantity demanded of money balances and the price of holding money balances.
B) In the United States, the position of the money supply curve is determined exclusively by the Fed.
C) The "money market" discussed in this chapter refers to the market for short-term securities.
D) If, at a given interest rate, individuals want to hold less money than is supplied, this will put downward pressure on the interest rate.
E) none of the above
D
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The demand for labor is a derived demand. Employers hire workers until the
A. wage rate equals the average product of labor. B. wage rate equals the marginal revenue product of labor. C. last worker hired adds nothing to total output. D. average product of labor is zero.
People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country. People from the west also receive lower wages than people from the east. From this information alone, we can conclude that it is possible that
a. discrimination against people from the west exists. b. people from the east receive compensating differentials. c. people from the west have lower levels of human capital. d. All of the above could be correct.
According to most economists, the development of markets is:
A. both a necessary and a sufficient condition for development. B. a sufficient condition for development but not a necessary condition. C. a necessary condition for development but not a sufficient condition. D. neither a necessary nor a sufficient condition for development.
Evaluate the validity of the argument that a new industry in a nation needs protection from foreign competition if it is to prosper.
What will be an ideal response?