Maurice Richard loves to play hockey. He would play the minor leagues and the major leagues with equal gusto. Suppose he earned $35,000 playing for the minor league Urbana Tigers and "gets the call" from the Dallas Stars, a major league team. He excitedly tells his wife, an economist, that his wage is now $379,000 (that's the contract he signed) and she informs him that his wage-related rent is
a. $344,000
b. $379,000
c. $35,000
d. $414,000
e. $0 because he signed the "wage" contract
A
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For a monopsonist the marginal cost of increasing its workforce will always be greater than the wage rate because
A) there is not good factor substitution in a monopsony. B) the wage rate offered the newest employee must be paid to all workers. C) the industry will be a closed shop. D) a normal rate of return must be paid to the owner.
If polluters are forced to pay for the cost of their pollution, they will reduce pollution toward a socially optimal amount.
Answer the following statement true (T) or false (F)
What is the slope of the line of aggregate expenditure plotted against output in equilibrium?
a. 0.0 b. 0.5 c. 1.0 d. 1.5
The monetarists placed the blame for the economic instability of recent decades on
A. the President and Congress. B. the Federal Reserve. C. the American people. D. foreign investors.