The price elasticity of demand for a good produced by a monopolist
A) equals zero as long as the good has no close substitutes.
B) is always inelastic since the demand curve slopes down.
C) does not equal zero because there will always be some substitutes, however imperfect they may be.
D) does not equal zero because every good has at least one good substitute for it.
C
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The table above shows the balance sheet for Ralph's Bank. If the desired reserve ratio is 15 percent, Ralph's Bank has excess reserves of ________
A) $50 B) $500 C) $450 D) $2,500
Which of the following statements would proponents of the efficiency wage model be most likely to make to support their cause?
a. Happier workers are more intelligent and therefore require less training. b. Happier workers are more loyal, so the cost of training new employees is minimal. c. Happier workers demand fewer benefits such as higher wages and better training. d. Happier workers are less likely to join unions, which usually require employer- provided training.