In the above figure, what would be the wage paid and quantity of labor employed under competitive market conditions compared to monopsony conditions?
A) W1 and L1 with competition versus W2 and L2 with monopsony
B) W2 and L2 with competition versus W1 and L1 with monopsony
C) W2 and L2 with competition versus W3 and L1 with monopsony
D) W3 and L3 with competition versus W3 and L1 with monopsony
B
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In the Stackelberg model, the leader has a first-mover advantage because it
A) has lower costs than the follower. B) commits to producing a larger quantity. C) reacts to the follower's decision. D) differentiates its output.
Transfer payments are important for society because
a. the government needs to perform acts of goodwill to maintain citizens' support b. we could not count GDP without them c. they serve to redistribute money from one group of citizens to another d. government investment is an important component of GDP e. they result in lower taxes for citizens
The purchase of VCU2 by Tomas Tiergarten, a private resident,causes the nation's:
a. Monetary base to fall. b. M2 money supply to fall. c. M2 money multiplier to remain the same. d. Monetary base to rise.
If the price of inputs rises and consumer expectations about future economic activity worsens:
a. Price index falls, and real GDP falls. b. Price index falls, and the change in real GDP is uncertain. c. The change in price index is uncertain, and real GDP rises. d. The change in price index is uncertain, and real GDP falls. e. Neither the price index nor real GDP changes.