If a firm hires a resource in a perfectly competitive resource market,
a. it must also be a price taker in the product market
b. it must also be a monopolist in the product market
c. it faces a horizontal marginal resource cost curve
d. it faces an upward-sloping marginal resource cost curve
e. it faces a downward-sloping marginal resource cost curve
C
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Human capital is, in part, the
A) amount of money held by a worker. B) stock of knowledge of a worker. C) stock of plant and equipment. D) stock of financial assets held by the public.
In the 1920s and 1930s, economists became increasingly aware that there were industries that did not fit the model of perfect competition or pure monopoly. Two separate theories of monopolistic competition resulted. Edward Chamberlin of Harvard published the Theory of Monopolistic Competition in 1933. Chamberlin defined monopolistic competition as
A. a relatively large number of producers offering similar but differentiated products. B. a market situation in which a large number of firms produce identical products. C. a relatively small number of producers offering similar but differentiated products. D. a market situation in which a small number of firms produce similar products.
If the exchange rate between the United States and Greece changes from $1 = 1 euro to $1 = 2 euros, then holding everything else constant, the price of U.S. goods in Greece will increase.
Answer the following statement true (T) or false (F)
Suppose a bank has the following balance sheet:
Assets Liabilities Reserves $14,000 Deposits $100,000 Loans $90,000 Net Worth $4,000 If the required reserve ratio is 10 percent, how much excess reserves does the bank have? What is the maximum amount that the bank can expand its loans?