Minimum wages create unemployment in markets where they create a
a. shortage of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S.
b. shortage of labor. Minimum wage laws are the predominant reason for unemployment in the U.S.
c. surplus of labor. Minimum wage laws are not the predominant reason for unemployment in the U.S.
d. surplus of labor. Minimum wage laws are the predominant reason for unemployment in the U.S.
c
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If a bank has zero excess reserves and one of its creditworthy customers applies for a loan, the bank may be able to grant the loan if it can
A) apply some of its loan repayments to obtain the funds for the new loan. B) obtain extra funds in the federal funds market. C) obtain extra funds by borrowing from the Fed. D) any of the above E) b or c
The calculators of a price index use a “bundle” or “basket” of representative goods and services. What tradeoff are they making in this calculation?
a. ethics for monetary gain b. logic for relevance c. accuracy for convenience d. tradition for innovation
These are the cost and revenue curves associated with a firm.
If the firm in the graph were producing Q2 and charging P2, it:
A. represents the perfectly competitive outcome. B. is an outcome that eliminates deadweight loss. C. is an efficient outcome. D. All of these statements are true.
Suppose a survey is taken concerning car safety. According to the survey, people strongly desire safer cars and indicate they are willing to pay substantially more for safer cars. Using this information, one auto firm adds numerous safety features to its
car, raising the price by several thousand dollars. Sales drop sharply, and the firm loses profits. What went wrong? What will be an ideal response?