Major league baseball is exempt from antitrust prosecution by way of the so-called "reserve clause." The elimination of the reserve clause in baseball to encourage players to act as free agents can help
A. reduce the exercise of monopsony power by team owners.
B. increase the exercise of monopsony power by team owners.
C. increase the profits of team owners.
D. reduce the wages paid to baseball players.
A. reduce the exercise of monopsony power by team owners.
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The sale of government securities by the Fed leads to
A) a decrease in bank reserves. B) a contraction in bank lending. C) a decrease in the monetary base. D) All of the above answers are correct.
The demand for most farm products is relatively inelastic. All else constant, what is the effect on farm revenues as a result of the introduction of new and better farm equipment which increases productivity?
A) Farm revenues could increase or decrease depending on the cost of this new equipment. B) Farm revenues remain constant because consumers will not increase their consumption of farm products by much. C) Farm revenues increase. D) Farm revenues decrease.
Explain how each of the following might make use of the futures market. (a) A lender who is worried that its cost of funds might rise during the term of a loan it has made (b) A speculator who believes strongly that interest rates will rise
What will be an ideal response?
The marginal propensity to consume is:
a. the change in income divided by the change in consumption. b. consumption spending divided by income. c. income divided by consumption spending. d. the change in consumption divided by the change in income. e. the change in consumption divided by income.