Micro unit 6

In a competitive resource market, the firm employing a resource such as labor is

• wage taker

• cost maker

• price maker

• revenue taker

A characteristic of a purely competitive labor market would be

• firm sharing different types of labor

• workers supplying labor under a union contract

• wage taker behavior by firms

• price maker behavior by firms

Higher wage rates and a higher level of employment for workers are the usual consequences of

• inclusive or craft unionism

• exclusive or industrial unionism

• above-equilibrium wage rate

• an increase in the productivity of labor

A monopsonist pays a wage rate that is

• greatert than the marginal revenue product of labor

• equal to the marginal revenue product of labor

• less than the marginal revenue product of labor

• equal to the firm’s marginal labor cost

A person who invests in mutual funds is choosing an investment that

• has the lowest risk and the lowest returns

• has a balance of low risk/low return and highrisk/high return option

• has the highest risks and the highest returns

• has the highest risks and the lowest returns

If a bank pays 3% interest on savings, how much interest will it charge for loans?

• 3%

• more than 3%

• less than 3%

• the discount rate

The BEST way to improve your credit rating is to

• never get a credit card

• never borrow money from a bank

• Never accumulate assets and collateral

• Never forget to pay your bills on time

The Federal Deposit Insurance Corporation (FDIC) is a government agency that

• provides health insurance for low-income people

• Protects the savings of people who deposit their money in banks

• provides mortgage insurance for homeowners

• protects banks from the risks of bankruptcy

Your creditworthiness, or ability to get a loan, depends on

• only your income and your current debts

• only your history of paying bills and repaying loans

• your income, debt, assets, and credit history

• only the assets you can use as collateral

A financial contract through which a borrower agrees to repay the amount that was borrowed and a rate of interest

• bond

• stock

• mutual fund