A market failure is a situation in which
A) resources are being efficiently allocated, but some companies are forced to shut down.
B) the market equilibrium leads to either too many or too few resources going towards producing the good or service.
C) the government must take actions to correct the failures of the market in a particular industry.
D) there is no free entry or exit into an industry.
B
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The minimum amount of reserves the Fed requires a bank to hold
a. is the excess reserve requirement b. is the legal reserve requirement c. is the deposit requirement d. depends on the interest rate e. depends on the money supply
An increase in the marginal factor cost of labor will
A) lead to an increase in the quantity demanded of labor. B) induce a firm to hire fewer workers. C) lead to an increase in the value of an additional worker. D) cause the value of the marginal product of labor to increase.