A profit-maximizing monopsonist will hire workers up to the point at which
A. MRP = MFC.
B. W = MRP = MFC.
C. W = MRP.
D. W = MFC.
Answer: A
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What will be an ideal response?
Using the standard 45-degree line diagram, how does a decrease in net exports effect the expenditure schedule?
a. It increases the slope of the expenditure schedule. b. It decreases the slope of the expenditure schedule. c. It shifts the expenditure schedule upward. d. It shifts the expenditure schedule downward.
When politicians support policies that benefit small interest groups, such as farmers, at the expense of unorganized, widely dispersed groups, for example, taxpayers or consumers, this is a reflection of the
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Keynesian belief that the aggregate supply curve is relatively flat in the short run means that they expect their policies to cause
A. small increases in output and much inflation. B. small increases in output and little inflation. C. large increases in output and little inflation. D. large increases in output and much inflation.