Bridge Coal Company is the only employer in a remote and mountainous region of the country, so the firm is the monopsony buyer of labor in the market
If the price of coal increases, then the firm's quantity of labor demanded ________ and the equilibrium wage ________. A) decreases, decreases
B) decreases, increases
C) increases, decreases
D) increases, increases
D
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Efficient production can be carried out anywhere on or beyond the production possibilities frontier.
Answer the following statement true (T) or false (F)
In Figure 4-6 above, with IS0 shifting to IS1 against the upward-sloping LM curve, crowding-out is the result that
A) income stays at YO3. B) income rises to Y1 instead of to Y2. C) income rises to Y1 instead of staying at YO3. D) income rises to Y2 instead of to Y1.
The RAND Health Insurance Study:
a. was set up to study medical outcomes when individuals were free to choose the type of health coverage they desired. b. examined cross-section data to estimate the demand function for medical care. c. was the most extensive controlled experiment in health insurance ever conducted in the United States. d. was flawed due to severe self-selection bias. e. like most economic studies, was based on individual decisions in voluntarily choosing health insurance coverage.
Which of the following is the money multiplier?
A. The required reserve ratio. B. 1/(1 - the required reserve ratio). C. 1/(required reserve ratio). D. 1/(1 - MPC).