In Macroland there is $1,000,000 in currency that can either be held by the public as currency or deposited into banks. Banks' desired reserve/deposit ratio is 10 percent. If the public of Macroland decides to hold more currency, increasing the proportion they hold from 50 percent to 75 percent, the money supply in Macroland will ________.
A. decrease.
B. remain the same.
C. either increase or decrease.
D. increase.
Answer: A
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When the marginal product of labor is greater than the average product of labor, the
A) marginal product of labor must be increasing as labor increases. B) average product of labor must be increasing as labor increases. C) total product must be increasing at an increasing rate as labor increases. D) None of the above answers is correct.
Which of the following countries is lacking an abundance of natural resources?
a. Australia b. Japan c. Brazil d. United States
The supplier of a factor of production has a reservation price of $100. The purchaser of the factor of production has a reservation price of $200. If the factor of production is unique, then:
A. a transaction will occur, and the price paid for the factor of production will be $200. B. a transaction will occur, and the price paid for the factor of production will be $100. C. a transaction will occur, and the price paid for the factor of production will be $150. D. there will be no transaction since $200 is greater than $100.
All of the following at one time had control over an essential resource that served as a barrier to entry except
A. DeBeer's Diamond Company. B. Standard Oil Company. C. International Nickel Company of Canada. D. IBM.