Refer to Figure 4-9. How much of the tax is paid by producers?
A) $45 B) $8 C) $3 D) $2
D
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When a monopsony hires an additional worker, it must pay the new worker's wages and it bids up the wages of all workers. This fact implies that the monopsony's
a. marginal labor cost is greater than the wage rate. b. demand curve for labor is perfectly elastic at the going market wage. c. marginal revenue product of labor is equal to the wage rate. d. labor usage is greater than that of a firm that is competitive in the labor market.
A change in the demand for apples could result from any of the following EXCEPT
A) a change in the number of buyers. B) increased preferences for fresh fruit consumption for health reasons. C) a change in the price of an apple. D) a change in the price of a banana. E) a change in income.
When the Fed injected newly made money into the economy by buying bonds, it:
A. inserted over $1 trillion of new money into the economy. B. was practicing quantitative easing. C. was trying to avoid a deflationary period similar to Japan. D. All of these statements are true.
Suppose that initially, the equations for demand and supply are Qd = 48 ? 4P and Qs = 4P ? 16, respectively. If the quantity supplied increases by 4 at every price (so that the supply curve shifts to the right), the equilibrium price will change from:
A. $8 to $7.50. B. $12 to $8. C. $7.50 to $8. D. $8 to $12.