A monopsonist's marginal factor cost (MFC) curve lies above its supply curve because the firm must:
A. lower the factor price to hire more.
B. increase the price of its product to sell more.
C. increase the factor price to hire more.
D. lower the product price to sell more.
Answer: C
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This year, real GDP per person in Country A is eight times real GDP per person in Country B
If Country B's real GDP per person grows at a rate of 5 percent, about how many years will it take for Country B to reach the level of real GDP per person in Country A in this year? A) 42 years B) 56 years C) 14 years D) 28 years E) It will never reach Country A's level of GDP per person.
The table above gives data for the nation of Mosh. If real GDP is $6 trillion, then
A) firms increase production because inventories are less than their target levels. B) the economy has reached equilibrium and no change in production will occur. C) firms increase production because inventories exceed their target levels. D) firms decrease production because inventories exceed their target levels. E) We need more information to determine whether firms increase, decrease, or do not change their production.
Refer to the above diagram. If the production possibilities curve of an economy shifts from AB to EF, it is most likely the result of what factor affecting economic growth?
A. An efficiency factor. B. A demand factor. C. An allocation factor. D. A supply factor.
You receive money as payment for babysitting your neighbors' children. This best illustrates which function of money?
a. medium of exchange b. unit of account c. store of value d. liquidity