Refer to the below graph. The producer illustrated:
A. Is a monopsonist since MR = P for every unit of output sold
B. Is a pure competitor in the output market, since it must charge a constant price
C. Hires labor as a monopsonist, since it has control over the market wage rate
D. Hires labor in a competitive market, since it must pay each worker the market wage rate
D. Hires labor in a competitive market, since it must pay each worker the market wage rate
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Refer to Figure 15-15. In the figure above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could the Federal Reserve use to move the economy to point C?
A) decrease income taxes B) sell Treasury bills C) decrease the required-reserve ratio D) buy Treasury bills
A firm has an incentive to decrease supply now and increase supply in the future if it expects that
A) the price of its product will be lower in the future than it is today. B) more firms will enter the market in the future. C) the price of its product will be higher in the future than it is today. D) the prices of inputs used to produce the product will rise in the future.
In the Keynesian aggregate expenditure model, the 45-degree line indicates:
a. amounts households plan to spend at each possible level of income. b. amounts households plan to save at each possible level of income. c. all income levels at which the planned spending of decision makers equals total output. d. all income levels at which the marginal propensity to consume is one.
A monopsonist in the labor market has
A. an upward sloping labor supply curve. B. a perfectly elastic labor supply. C. an upward sloping marginal revenue product curve. D. a decreasing average variable cost.