A monopolist hires fewer workers than a perfectly competitive industry, other things being equal, because
A) a monopolist has to pay higher wages in order to attract additional workers.
B) the monopolist substitutes more capital for labor when compared to a competitive industry.
C) the monopolist producer has to deal with unions and face higher wages than do competitive industries.
D) the monopolist produces less output than a competitive industry.
Answer: D
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The growth records of Japan and Hong Kong during the last fifty years indicate that an economy can grow rapidly without
a. securely defined property rights. b. abundant domestic natural resources. c. significant capital formation. d. adopting modern technology.
In order to identify their used cars as plums (high-quality), many used car dealers:
A. raise the minimum price of plums (high-quality). B. advertise their prices. C. offer money-back guarantees. D. raise the minimum price of lemons (low-quality).
Which of the following is NOT a fiscal policy action?
A. decreasing government spending on social welfare B. lowering income tax rates C. increasing government expenditures on military hardware D. decreasing the quantity of money in circulation
Refer to Figure 2-6. If the economy is currently producing at point E, what is the opportunity cost of moving to point D?
A) 26 thousand forks B) 0 spoons C) 16 thousand spoons D) 20 thousand forks