Suppose the following two events occur in the domestic market for radiologists:
a. Some hospitals are outsourcing some radiology services such as reading x-rays.
b. Some medical schools have closed down their radiology departments as fewer students enroll in this field.
What is likely to happen to the equilibrium wage and quantity of radiologists following these two events?
A) The equilibrium wage falls and the effect on equilibrium quantity of radiologists is indeterminate.
B) The equilibrium wage and the equilibrium quantity of radiologists fall.
C) The equilibrium wage and the equilibrium quantity of radiologists rise.
D) The equilibrium quantity falls and the effect on the equilibrium wage of radiologists is indeterminate.
D
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Suppose the table below describes the relationship between price and quantity demanded for a monopolist.QuantityPrice1$102$93$84$75$66$57$48$3Â The marginal revenue of the fifth unit of output is:
A. $2. B. $30. C. -$2. D. $6.
Money as defined by M1 includes
A. coins. B. paper money. C. checking deposits. D. travelers’ checks. E. All of these responses are correct.
A lower level of income causes the demand for money to ________ and the interest rate to ________, everything else held constant
A) decrease; decrease B) decrease; increase C) increase; decrease D) increase; increase
Which of the following could generate economic profits for perfectly competitive firms in the short run, if they initially earn zero economic profits?
A) a fall in demand B) a unit tax on output C) an increase in total fixed costs D) a decrease in input prices