The table below shows a competitive firm's short-run production function. Labor is the firm's only variable input, and market price for the firm's product is $2 per unit.
If the wage rate is $200, how many units of labor will the firm employ?
A. 3
B. 4
C. 5
D. 6
E. 0, the firm shuts down
Answer: B
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The firm in the figure above has a total cost equal to ________
A) $5.10 × 10 B) $8.00 × 10 C) ($5.10 - $8.00 ) × 10 D) ($8.00 - $5.10 ) × 10 E) None of the above answers is correct because more information is needed.
The Federal Open Market Committee consists of the
A) Federal Reserve chairman and the other six members of the Board of Governors. B) Federal Reserve branch bank presidents. C) Federal Reserve chairman and the Federal Reserve branch bank presidents. D) Federal Reserve chairman, the other six members of the Board of Governors, and five of the Federal Reserve branch bank presidents.
In the monetarist view, the long-run Phillips curve is
a. horizontal. b. downward sloping. c. downward sloping but steeper than the short-run curve. d. downward sloping but flatter than the short-run curve. e. none of the above.
Raising the required reserve ratio __________ the simple deposit multiplier which will __________ the economy's money supply
A) raises; increase B) raises; decrease C) lowers; increase D) lowers; decrease