If the Fed wishes to decrease the money supply, it could:
A. buy bonds.
B. increase the reserve requirement.
C. decrease the discount rate.
D. print less currency.
B. increase the reserve requirement.
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Suppose that the elasticity of demand for insulin is 0.1, the elasticity of demand for oranges is 1.2, and the elasticity of supply for insulin and oranges is 0.4
If the government imposes a 10 percent tax on both insulin and oranges, the decrease in the quantity of oranges is ________ the decrease in the quantity of insulin. A) larger than B) smaller than C) equals to D) not comparable to E) More information is needed to determine how the decrease in the quantity of oranges compares to the decrease in the quantity of insulin.
Which incentive scheme would simultaneously elicit accurate information about feasible plant production levels and motivate managers to perform up to potential (in the following schemes, B is the bonus payment, Q is actual plant output, and Qf is the
manager's estimate of feasible output)? A) B = 0.4Q B) B = 0.4(Q - Qf) C) B = 0.4Qf + 0.3(Q - Qf) if Q > Qf D) B = 0.4Qf - 0.6(Q - Qf) if Q < Qf E) B = 0.4Qf - 0.6(Q - Qf) if Q > Qf
If the firm hires 5 workers, the total amount of fixed costs equals
a. $250 b. $50 c. $200 d. $1200
If the wage rate is fixed at a certain level, then MLC is equal to that wage rate
Indicate whether the statement is true or false