Compared to a purely competitive firm, a monopsonist will pay:
A. A higher wage rate to its workers
B. Lower wages but hire more workers than the purely competitive firm
C. Lower wage rates and hire fewer workers than the purely competitive firm
D. Lower wages while hiring the same quantity of workers as the purely competitive firm
C. Lower wage rates and hire fewer workers than the purely competitive firm
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Use the following graph to answer the next question.
Suppose the economy is in equilibrium at point C. A personal income tax cut would most likely
A. move the economy upward from point C along AD1. B. cause the AS curve to shift to the right. C. move the economy downward from point C along AD1. D. move the economy from point C toward point B.
In the figure above, the shift in the aggregate demand curve from AD1 to AD2 could be result of
A) an increase in government expenditures on goods and services. B) a decrease in the quantity of money. C) a rise in the price level. D) a fall in the price level. E) an increase in taxes.
Soda and peanuts are complements. Other influences on buying plans remaining the same, a rise in the price of soda
A) increases the demand for peanuts. B) decreases the demand for peanuts. C) decreases the demand for soda. D) increases the demand for soda. E) has no effect on the demand for peanuts, though it does change the quantity demanded of peanuts.
Suppose Billy owns a hair salon in Dallas. He has one large hair dryer for which he paid $1,000. If he can sell the dryer one year later for $800, his total economic depreciation equals
A) $1,000. B) $200. C) $800. D) $1,800. E) None of the above answers is correct.