Which of the following examples best reflects a perfectly competitive market?
a. Sonya raises her price for oranges above the market price to make a larger profit.
b. Pierre raises his price for grapes, but he still keeps it below to market price to make a larger profit.
c. Mark refuses to raise his price for apples to $5 even though the market price is $5.
d. Jane refuses to lower her price for figs to $4 because she can sell as much at the higher market price.
d. Jane refuses to lower her price for figs to $4 because she can sell as much at the higher market price.
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Answer the following statements true (T) or false (F)
1. In 2011, China overtook Mexico to become the number one country of origin of U.S. legal immigrants. 2. In 2007, immigrants made up a larger portion of the labor force in the U.S. than that in Canada. 3. The simple immigration model suggests that, for a high-wage country like the United States, immigration tends to reduce domestic output as well as the total income of businesses. 4. An increase in the mobility of labor across nations tends to decrease the world's output of goods and services.
The expenditure multiplier in the ISLM framework is smaller than that derived from the simple Keynesian model because
A) velocity is always assumed to be constant. B) the economy is assumed to be in the liquidity trap. C) the aggregate supply curve is assumed to be horizontal. D) the LM curve is assumed to have a positive slope.
According to the above figure, the maximum profit the monopolist can receive is
A) 0. B) $1,500 per day. C) $9,000 per day. D) $7,500 per day.
Assume that the reserve requirement is 20 percent. First National Bank has vault cash and deposits with the Fed of $80 million, loans and securities of $320 million, and demand deposits of $400 million. First National:
a. could extend a maximum of $40 million of additional loans. b. could extend a maximum of $20 million of additional loans. c. could extend a maximum of $10 million of additional loans. d. is not in a position to extend additional loans.