Which of the following is not a basic assumption underlying the theory of consumer behavior?
A) Consumers prefer more to less.
B) Consumer preferences depend on the amounts of goods they consume as well as the amounts being consumed by other consumers.
C) Goods are continuously divisible, that is, consumers can always purchase one more or one less unit of a good.
D) Consumers have well-behaved preferences, that is, preference orderings are complete.
B
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A monopolist will hire fewer workers than a perfectly competitive firm because
A) the marginal product curve decreases as additional units of labor are hired for a monopoly but not for a competitive firm. B) there is a variety of employers in a competitive market and only one in a monopoly. C) marginal revenue is greater than price for a monopoly while marginal revenue is equal to price for a competitive firm. D) to sell an additional unit of the good the competitive firm will keep the price the same while the monopolist must lower it on all units sold.
An unanticipated shift to a more expansionary macro-policy that leads to a higher-than-expected rate of inflation will
a. place downward pressure on prices. b. temporarily reduce unemployment. c. temporarily reduce output. d. temporarily reduce the natural rate of unemployment.
In a perfectly competitive labor market, the wage rate paid by the individual firm is
A) the equilibrium market wage rate. B) dependent on the demand for the product. C) below the equilibrium market wage rate. D) a function of the tax system.
A labor union that consists of workers from a particular industry is a(n)
A) closed shop. B) industrial union. C) union shop. D) bilateral monopoly.