If the marginal factor cost is less than labor demand, a monopsonist should
A. Hire fewer workers.
B. Reduce the wage rate.
C. Hire additional workers.
D. Increase the wage rate.
Answer: C
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If demand is ________ with respect to price, a price increase will ________ total revenue.
A. inelastic; decrease B. inelastic; increase C. elastic; increase D. unit elastic; decrease
The countries that have made the least use of securities markets are ________ and ________; in these two countries finance from financial intermediaries has been almost ten times greater than that from securities markets
A) Germany; Japan B) Germany; Great Britain C) Great Britain; Canada D) Canada; Japan
Automatic stabilizers
A. Are zero at full employment. B. Help to moderate the extremes of the business cycle. C. Cause spending to decrease during a recession. D. Are included in discretionary fiscal spending.
A manager of a firm with market power faces the marginal revenue product and average revenue product curves shown below. The firm incurs weekly fixed costs of $1,800. The firm employs a single variable input, labor, which costs $600 per worker each week.
Given the above, the 14th worker hired adds ________ to the firm's total revenue each week.
A. $200 per week B. $400 per week C. $500 per week D. $700 per week E. $900 per week