A firm that is a monopsonist in the labor market and a monopolist in the product market will hire labor to the point at which
A) MFC = MRPm.
B) a perfectly elastic labor supply = MRP.
C) a perfectly inelastic labor supply = perfectly inelastic labor demand.
D) where supply of labor = demand for labor.
A
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The actions of speculators
a. help smooth out price fluctuations. b. serve no useful economic purpose. c. make investment much more risky. d. cause severe shortages of some commodities.
The degree of income inequality produced by competitive markets, in Professor Rawls' view, is:
A. greater than the amount people would prefer. B. minor. C. acceptable. D. consistent with the ideal amount.
Susan Chen is a stock analyst. She values two goods: money (income) and her integrity. Her bonus is based on the number of investments she recommends to the company. Generally speaking, the higher the bonus she receives,
A. the smaller is the shift in her budget line. B. the more she is willing to trade off her integrity for money. C. the less she is willing to trade off her integrity for money. D. the more she is indifferent to changes in the level of bonus.
The real business cycle theory holds that business fluctuations are caused by
A. "stop-and-go" monetary policies. B. factors affecting aggregate demand. C. significant changes in technology and resource availability. D. incorrectly anticipated government stabilization policies.