If MFC > MRPL, the firm should
A) hire more workers.
B) lower wages.
C) get rid of some capital.
D) reduce the number of workers.
Answer: D
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If the required reserve ratio (RR) is 20 percent, the simple deposit multiplier is
A) 2. B) 5. C) 10. D) 20.
When a perfectly competitive firm increases output, total revenue:
A. increases, because there is no price effect. B. decreases, because there is no price effect. C. increases, because there is no quantity effect. D. decreases, because there is no quantity effect.
As the stock of capital grows, there will typically be ________ depreciation.
A. less B. more C. the same amount of D. no
An economy's infrastructure refers to its:
A. public capital goods, such as roads, schools, and power facilities. B. financial and banking institutions. C. land and natural resources. D. surplus supplies of unskilled labor.