If each bank in the United States had to keep 100 percent of checkable deposits as reserves, each $1 the Fed injected into new reserves could increase the money supply by:
a. $1

The above figure shows the market for labor. The employer is a monopsony. The firm maximizes its profit by hiring

A) 800 hours of labor at a wage of $5 per hour. B) 600 hours of labor at a wage of $10 per hour. C) 400 hours of labor at a wage of $5 per hour. D) 200 hours of labor at a wage of $5 per hour.

Let the production function be q = ALaKb. The function exhibits decreasing returns to scale if

A) a + b = 1. B) a + b > 1. C) a + b < 1. D) Cannot be determined with the information given.