A legally mandated minimum wage is an example of:
A. the invisible hand principle.
B. a price floor.
C. a price ceiling.
D. a fringe benefit.
Answer: B
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Use the figure below to answer the following question.
At equilibrium, economic surplus is
A. 200. B. 350. C. 150. D. 700.
A highly liquid asset
A) generally has a very limited market for its resale. B) has high transaction costs associated with its sale. C) must be held for a substantial period of time. D) can be disposed of easily without loss of value.
In the classical IS—LM/AD—AS model, a beneficial productivity shock would ________ output, ________ the real interest rate, and ________ the price level
A) increase; decrease; increase B) increase; decrease; decrease C) increase; increase; decrease D) decrease; decrease; increase
The interest rate that the Fed charges banks that borrow reserves from it is the
a. federal funds rate b. discount rate c. reserved rate d. investment rate e. check rate