Refer to the information provided in Figure 28.2 below to answer the question(s) that follow.
Figure 28.2Refer to Figure 28.2. If this firm pays the efficient wage of $9
A. the supply of labor will increase until $9 is also the equilibrium wage.
B. the firm's demand for labor will decrease until $9 is also the equilibrium wage.
C. there will be an excess demand for labor of 3,000.
D. there will be an excess supply of labor of 3,000.
Answer: C
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To contract the money supply, the Fed should
A) lower the required reserve ratio. B) increase government spending and cut taxes. C) reduce the differential between the discount rate and the federal funds rate. D) sell U.S. government securities.
Refer to Scenario 10.2. Suppose that in addition to the tax, a business license is required to stay in business. The license costs $1000. What happens to profit?
A) It increases by $1000. B) It decreases by $1000. C) It decreases by less than $1000. D) It stays the same.
The utility of a good is:
a. different for different consumers. b. the same for all consumers. c. constant no matter how much is consumed. d. related to the cost of producing it. e. easily measured.
In international trade, dumping refers to
a. producing a lower quality good for export than what is produced for domestic consumption b. selling an export at a higher price than its price to domestic consumers c. selling an export at a price below its cost of production d. producing a lower quality good for domestic consumption than for export e. paying workers below subsistence wages