Refer to Figure 1.8. If the university decides to lower grading standards, then
A. We will slide up the curve from point B to point C.
B. The curve will begin to bend downward at an earlier point.
C. This curve will shift to the left.
D. This curve will shift rightward.
Answer: C
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To maximize its profits, a monopsonist will hire labor the quantity of labor at which marginal revenue product of labor
a. is downward sloping and equal to the market wage rate. b. is downward sloping and equal to its marginal labor cost. c. minus marginal labor cost is maximized. d. is maximized.
Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
In the equilibrium this game, Tracy chooses the ________ branch, and then Amy chooses the ________ branch.
A. top; bottom B. bottom; top C. bottom; bottom D. top; top
A legal restriction on the amount of a good that can be imported into a country is known as a
A) voluntary restraint agreement. B) tariff. C) quota. D) Domestic Protection Restraint (DPR).
Which of the following is not a requirement for the existence of monopolistic competition in a market?
a. numerous small sellers b. full information about the market among buyers and sellers c. product homogeneity d. freedom of entry into the market