In order to hire additional laborers, a monopsony must
A) lower the supply of labor.
B) raise the wage rate.
C) advertise for the labor.
D) do nothing.
Answer: B
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When deriving an Engel curve, if the optimum point for good X lies to the left as income increases, good X is
a. a normal good. b. an inferior good. c. a Giffen good. d. a substitute for good Y.
Suppose the short-run supply curve is a straight line of slope +1 that intersects the origin. The long-run supply curve will be
A) horizontal. B) steeper. C) shallower. D) vertical.
Economic growth is difficult for poor countries because
A. governments must fund capital production and research out of tax revenues. B. resources must be taken away from consumer goods to pay for capital goods. C. those wealthy enough to invest in domestic industries may choose to invest abroad instead. D. All of the choices are true.
Refer to the information provided in Table 20.5 below to answer the question(s) that follow. Cashews are measured in bushels and tea is measured in pounds (lbs.)
Table 20.5
Refer to Table 20.5. In Vietnam, the opportunity cost of
A. a lb. of tea is 1/8 of a bushel of cashews. B. a lb. of tea is 2/15 of a bushel of cashews. C. a bushel of cashews is 4/3 of a lb. of tea. D. a lb. of tea is 40 bushels of cashews.