Suppose Afghanistan receives monthly gifts of food and other consumption goods from the world's nations. What effect will these gifts have on the Afghanistan’s labor market?
a. The demand for labor will rise.
b. The wage will rise and employment will fall.
c. Fewer jobs will be available and wages will be lower.
d. The gifts will have no effect on the labor market.
b. The wage will rise and employment will fall.
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The stock of high-powered money in the economy is $80 billion. The bank reserve-holding ratio is 0.12 and the public wishes to hold 10% of its deposits as cash. The money supply will be approximately
A) $363 billion assuming the 80 billion of high-powered money is held by banks. B) $400 billion assuming the 80 billion of high-powered money is held by the Fed or in bank vaults. C) $327 billion assuming the 80 billion of high-powered money is not held by the Fed or in bank vaults. D) $425 billion assuming the 80 billion of high-powered money is held by banks.
Under a rule of reason approach, which of the following would be legal in the United States?
a. The merger of two small companies in an unconcentrated market. b. Price fixing between IBM and Compaq. c. The merger between Ford and General Motors. d. Kellogg's and General Mills collude to drive Quaker Oats out of the business. e. Exxon Oil and Mobil Oil elect the same person to their boards of directors.