According to the quantity theory of money, increasing the money supply:
A. leads to decreased spending.
B. leads to inflation.
C. causes each dollar to be spent less often.
D. causes production to increase.
Answer: B
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Firm A is a monopsonist that faces a labor supply elasticity of 2.4 whereas Firm B is a monopsonist that faces a labor supply elasticity of 1.4. Which of these monopsonists pays a higher wage?
A) Firm A B) Firm B C) They both pay the same. D) It is impossible to tell which pays a higher wage.
Which is NOT an example of signaling high quality in a social setting
a. wearing a business suit on a job interview b. leaving a big tip for the waiter after a dinner date c. offering an expensive engagement ring to your bride d. Doing messy chores before a big date
When private benefits are less than social benefits, it means that:
A. positive externalities are present in the market. B. positive externalities are not present in the market. C. negative externalities are not present in the market. D. no externality of any kind is present in the market.
Government-created price floors are typically imposed to
a. help consumers b. help producers c. raise tax revenue d. shift the supply curve to the left e. shift the demand curve to the right