Which of the following is not true about a monopsonist?
A. It can set the wage rate and hire any desired number of workers at that wage.
B. It is the only buyer of labor in a market.
C. It usually extracts rents from its monopsony power.
D. It determines the optimal employment-wage rate combination by equating the marginal revenue product of labor to the marginal cost of labor.
Answer: A
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The government sector balance equals
A) net taxes plus government expenditures. B) saving plus investment. C) government expenditures plus investment. D) net taxes minus government expenditures. E) saving minus investment.
Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If 20,000 units of iced tea are sold
A) the marginal benefit of each of the 20,000 units of iced tea equals $3. B) producer surplus equals consumer surplus. C) marginal benefit is equal to marginal cost. D) the deadweight loss is equal to economic surplus.
Capital Funding
What will be an ideal response?
If the rate of growth in labor productivity averages 2 percent a year, it will take about 20 years for the standard of living to double.
Answer the following statement true (T) or false (F)