According to the income effect of labor supply, if leisure is a normal good, then an increase in the wage rate will ________ the quantity of labor ________.
A. increase; supplied
B. decrease; supplied
C. increase; demanded
D. decrease; demanded
Answer: B
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A financial asset is considered ________ if it can be sold in a secondary market
A) durable B) a security C) a liability D) a commodity
The first bank chartered in the United States was the
a. First National Bank of the United States b. First National Bank of Boston c. First National Bank of New York d. Bank of North America e. Federal Reserve
One intention of deposit insurance is to reduce the danger of
A. excess lending. B. excess profits. C. risky lending. D. bank runs. E. All of these responses are correct.
How does a perfect market influence output?
(A) Different firms each strive to make more goods and capture more of the market. (B) Different firms make different amounts of goods, but some make a profit and others do not. (C) Each firm makes its output as large as possible even though some goods are not sold. (D) Each firm adjusts its output so that its costs, including profit, are covered.