Figure 3.3 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, there is an:
A. excess demand of 8 t-shirts.
B. excess supply of 8 t-shirts.
C. excess demand of 10 t-shirts.
D. excess supply of 10 t-shirts.
Answer: A
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The market implications of taste-based discrimination were in part developed by:
A) Gary Becker. B) Amartya Sen. C) Simon Kuznets. D) Paul Samuelson.
The relationship between education and productivity is easily quantified because causation clearly flows from education to increased productivity
a. True b. False
A monopsonist that faces a labor supply curve of the form l = 4w and has a constant marginal revenue product of 50 per unit of l, will opt for the following, w, l combination:
a. w = 10 l = 40. b. w = 25 l = 100. c. w = 50 l = 200. d. w = 100 l = 400.
If the Board of Governors of the Federal Reserve System increases the legal reserve ratio, this change will:
A. Increase the excess reserves of member banks and thus increase the money supply B. Increase the excess reserves of member banks and thus decrease the money supply C. Decrease the excess reserves of member banks and thus decrease the money supply D. Decrease the excess reserves of member banks and thus increase the money supply