The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour. After this minimum wage is in effect, the deadweight loss equals ________
A) $400
B) $200
C) $800
D) $1600
E) $100
B
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The stock market provides two functions for corporate financing: reducing investors’ risk and setting the prices of stocks.
Answer the following statement true (T) or false (F)
Which of the following is not a coincident indicator?
a. Personal income. b. Industrial production. c. Manufacturing and trade sales. d. All of these.
A profit-maximizing firm should employ a resource up to the point that:
a. marginal revenue product is zero. b. marginal revenue product equals marginal resource cost. c. marginal revenue product is maximized. d. marginal revenue equals marginal cost.
Use the following graph, which shows the supply and demand for British pounds, to answer the next question.
D1 and S1 represent the initial demand and supply curves. If the supply of British pounds in the foreign exchange market shifts to S3, and the British government wants to fix the exchange rate at its initial level, then it should ________.
A. buy U.S. dollars to add to its reserves B. sell U.S. dollars out of its reserves C. buy British bonds in the open market D. sell British pounds in the foreign exchange market