Lorna's Lumberyard is a monopsony. Lorna estimates that at a wage of $10 per hour, 100 workers would be willing to work for her. Similarly, at a wage of $12 per hour, 200 workers would be willing to work. Her marginal labor cost is
a. $10
b. $14
c. $120
d. $140
e. $240
B
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During a(n) ________ many firms experience reduced profits, which reduces ________ and investment spending
A) recession; government spending B) recession; cash flow C) expansion; cash flow D) expansion; business confidence
Targeting interest rates can be procyclical because
A) an increase in income increases interest rates, causing the Fed to buy bonds, increasing the monetary base and money supply, leading to further increases in income. B) an increase in interest rates increases income, causing the Fed to buy bonds, increasing the monetary base and money supply, leading to further increases in income. C) an increase in the monetary base increases the money supply, causing the Fed to buy bonds, increasing the monetary base and money supply, leading to further increases in income. D) an increase in income increases the monetary base and money supply, causing the Fed to buy bonds to increase interest rates and income.
In 2008, interest rates on Treasury securities fell even though most other interest rates were rising
a. True b. False Indicate whether the statement is true or false
Higher-income countries tend to have lower levels of absolute poverty because they
a. have more employment opportunities. b. have more public assistance. c. have greater entrepreneurship opportunities. d. All of the above.