Refer to Scenario 10.9. At the profit maximizing level of output, what is the deadweight loss?
A) 0
B) 450
C) 900
D) 1,800
E) none of the above
C
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Limit commitment occurs when
A) collateral is required to get a loan. B) one cannot borrow as much as necessary to conduct business. C) one cannot be forced to repay a loan. D) the bank can sell your loan to another bank.
Assuming a required reserve ratio of 10% and the Fed purchased $1 million worth of mortgage-backed securities, make use of the simple deposit multiplier to determine how much checking deposits would change
A) increase by $1 million B) increase by $10 million C) decrease by $1 million D) decrease by $10 million
Which of the following is the most likely effect of minimum wage laws?
a. increase in the quantity of labor supplied by workers b. decrease in the quantity of labor supplied by workers c. increase in the quantity of labor demanded by firms d. decrease in unemployment e. a shift to the left of the demand curve for labor
The Federal Reserve is most concerned with
A. the CPI. B. the PPI. C. the PCE. D. the Core PCE.