Econ 15,16,20,21,22

why might some firms voluntarily pay workers a wage above the market equilibrium, even i the presence of surplus labor?

-Paying higher wages encourages workers to be more productive.- Higher wages attract a more competent pool of workers.- Paying higher wages can reduce a firm's training costs.-Paying higher wages encourages workers to be more productive.-Paying higher wages can reduce a firm's training costs-Paying higher wages can reduce a firm's training costs-Higher wages attract a more competent pool of workers incorrect: Paying higher wages increases worker turnover

which of the following statements correctly describe discouraged workers?

-They have given up on looking for a job.-They have not looked for a job in 6 weeks, but they would like a job and are available for work.

how many federal reserve regional banks are there?

12

Which of the following is true of the capital requirement? Check all that apply.1. It specifies a minimum leverage ratio for all banks.2. Its intended goal is to protect the interests of the depositors.3. Its intended goal is to protect the interests of those who hold equity in the bank.

2. Its intended goal is to protect the interests of the depositors.Explanation:Capital requirements are designed to ensure that banks will have sufficient capital to repay the depositors and debtors. A bank's "capital" is the difference between the total value of the bank's assets and its total deposits plus debt. That is, the bank's capital is the money that would be left over if the bank were able to liquidate all of its assets to pay off all of its depositors and debtors. If a bank holds a high percentage of "risky" assets (such as loans that could be defaulted on), capital requirements are higher to ensure that the bank will remain solvent—even if some of its loans are not repaid.Thus the capital requirement does not specify any set requirement for all banks but rather determines the amount of capital that is appropriate to balance the amount of risk a bank carries with its asset allocation.

The Federal Reserve's Role as a lender of last resort involves lending to who?A) US Banks that cannot borrow anywhere elseB)U.S. state governments when they run short on tax revenuesC) Governments in developing countries during currency crises

A

Which of the following is a responsibility of the Federal Open Market Committee (FOMC)?A) Making decisions regarding monetary policyB) Issuing mortgages to homeownersC) Buying and selling stocks

A: making decisions regarding money policy

in order to increase the number of dollars in the US economy (money supply), the federal reserve will ____ government bonds?

buy

Charles is a famous novelist. He is spending the summer at his lake house in upstate New York, doing a little writing each day but mostly spending his time gardening and reading.

employed

Rajiv is a 42-year-old autoworker who was laid off from his job 6 months ago. he is frustrated with his inability to find a new full-time position. Last week he took a part-time job but was given only 3 hours of work

employed

cyclical unemployment

form of unemployment associated with business cycles. Rises during recessions and falls during expansions. If someone loses their job due to the recession, it would be cyclical unemployment.

The federal funds rate is the interest rate that banks charge one another for short-term (typically overnight) loans. When the Federal Reserve uses open-market operations to buy government bonds, the quantity of reserves in the banking system ______ , banks' need to borrow from each other ______ , and the federal funds rate______ .

increases, declines, decreasesExplanation:To reduce the federal funds rate, the Federal Reserve uses open-market operations to buy government bonds from the public. The Federal Reserve's government bonds purchase injects reserves into the banking system. With additional reserves, banks are no longer as close to their required reserve ratio, so the need for banks to borrow from each other declines, pushing the federal funds rate downward.Similarly, the Federal Reserve sells government bonds in order to raise the federal funds rate. The sale of government bonds reduces the quantity of reserves in the banking system, causing banks' need to borrow from each other to rise, pushing the federal funds rate upward.

An item has ____ value if it has value outside of its use as money

intrinsic

What are the 3 functions of money?

medium of exchange unit of account store of value

Yakov is a 79-year-old retired professor. He enjoys volunteering at the local public library.

not in the labor force

In order to decrease the number of dollars in the US economy (money supply), the federal reserve will ___ government bonds?

sell

percentage change

the percentage change for 1981 can be calculated by finding the change in GDP from 1980 to 1981, dividing this change by the level of GDP in 1980, and then multiplying the result by 100%

Nominal GDP

the value of final goods and services evaluated at current-year prices

Excluding discouraged workers from the official unemployment rate may cause the official rate to----- Correct the true extent of underemployment.

understate

Simone is a 26-year-old recent college graduate. She did not work for pay last week, but she had two job interviews.

unemployed

natural rate of unemployment

when there is no cyclical unemployment