A monopsonist must pay a higher net wage rate to hire additional workers because as a single
A. Seller, it does not have to compete with other firms for customers.
B. Buyer in the market, it faces a flat supply curve for labor.
C. Buyer in the market, it faces an upward-sloping supply curve for labor.
D. Seller, it has market power.
Answer: C
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
If the consumer price index (CPI) is 220 one year and 210 the next, the annual rate of inflation as measured by the CPI is approximately _____
a. ?2.3 percent b. ?4.6 percent c. 10 percent d. 4.8 percent e. 220 percent
Suppose an early freeze decreases the supply of oranges. The equilibrium quantity in this market will not change after the change in supply if the demand curve were: a. perfectly horizontal. b. perfectly vertical
c. downward sloping. d. upward sloping.
Refer to the graph shown. A policy that cuts government spending would be most appropriate when the economy is at point:
A. A. B. B. C. C. D. D.