In the simple model of multiple deposit creation in which banks do not hold excess reserves, the increase in checkable deposits equals the product of the change in reserves and the
A) reciprocal of the excess reserve ratio.
B) simple deposit expansion multiplier.
C) reciprocal of the simple deposit multiplier.
D) discount rate.
B
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One way to overcome the problem of adverse selection in labor markets is to
a. use signaling and screening b. advertise job openings widely c. contract out the hiring function d. pay above average wages e. pay below average wages
Which of the following types of goods are rival in consumption?
a. private goods and club goods b. private goods and common resources c. public goods and club goods d. public goods and common resources
A negative externality such as pollution can be corrected by
A) a subsidy to producers. B) a tax on producers. C) a subsidy to consumers. D) a stimulus to production.
When it comes to productivity, some economists argue that
A) unions have caused a decrease in productivity by excessive staffing and makework requirements. B) through the use of featherbedding unions have been responsible for productivity increases. C) the passage of the Taft-Hartley Act has led to a significant decrease in productivity. D) the union's insistence on profitability laborsaving devices has led to an increase in productivity.