Relative to a competitive labor market, monopsony
A) is also efficient.
B) creates a deadweight loss because it pays an excessive wage.
C) creates a deadweight loss because the wage is below the marginal revenue product of labor.
D) creates a deadweight loss because the wage is above the marginal revenue product of labor.
C
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Free riding is possible if the good is nonexcludable
Indicate whether the statement is true or false
Omitted variable bias
A) will always be present as long as the regression R2 < 1. B) is always there but is negligible in almost all economic examples. C) exists if the omitted variable is correlated with the included regressor but is not a determinant of the dependent variable. D) exists if the omitted variable is correlated with the included regressor and is a determinant of the dependent variable.
Your city newspaper publishes a "Best of" poll that lists its readers' favorite restaurants. Mundo Bar and Grill is ranked as the best casual restaurant. Your best friend had dinner at Mundo Bar and Grill last week and commented that the food was mediocre and the service was slow. You decide not to have dinner at Mundo Bar and Grill based on your friend's experience. Your decision illustrates
that people a. are reluctant to change their minds. b. are overconfident. c. give too much weight to a small number of vivid observations. d. are satisficers.
Each of these is true at equilibrium EXCEPT that
A. quantity demanded is equal to quantity supplied. B. the buyers can buy as much as they want at the market price. C. the sellers can sell as much as they want at the market price. D. All of these statements are true at equilibrium.