Which of the following characterizes a firm that is in long-run perfectly competitive equilibrium where profits are maximized?
A. Price exceeds marginal cost.
B. Price equals minimum ATC.
C. Positive economic profit.
D. Price equals marginal cost.
Answer: B
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A 5% increase in real income usually leads to ________ in money demand
A) a decrease B) no change C) an increase of less than 5% D) a decrease of 5%
Unlike private placements, publicly-sold securities lack
A) any kind of statement of the financial condition of the borrower. B) a secondary market. C) a definite maturity date. D) restrictive covenants.
Just prior to the year 2000, the Fed was concerned that people would make larger than normal bank withdrawals out of fear of what was called the "Y2K computer bug." Fearing that this would disrupt the banking system, the Fed wanted to use a defensive action to prevent any such disruption. This would take the form of open market bond:
A. sales that would prevent the federal funds rate from increasing. B. purchases that would prevent the federal funds rate from decreasing. C. purchases that would prevent the federal funds rate from increasing. D. sales that would prevent the federal funds rate from decreasing.
All of the following are benefits of labor unions EXCEPT
A) unions reduce wage inequity. B) unions increase the stability of the workforce. C) unions give workers a political voice. D) unions maximize employment for all workers.