A profit-maximizing monopsonist will hire the quantity of labor where
A. MRP equals zero.
B. MRP equals MFC.
C. MRP equals the wage rate.
D. Labor supply equals labor demand.
Answer: B
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Suppose an increase in the price of hair dryers leads to an increase in total expenditures on the hair dryers. Which of the following is true for this price change?
a. Hair dryers are an inferior good. b. The demand for hair dryers is perfectly elastic. c. The demand for hair dryers is inelastic. d. The demand for hair dryers is elastic.
Whenever central bankers face more than one goal, the policy framework requires:
A. central bankers to make their priorities clear. B. the central bank to always focus on inflation first. C. central bankers to focus on all goals, no matter what. D. economic growth to be the top priority.
(Interest Rate, Planned investment in billions): (3%,$400) (6%,$360), (9%, $320), (12%, $280), (15%, $240), (18%, $200): Suppose the expenditure multiplier is 5 and the initial interest rate is 12%. A move to what interest rate will increase equilibrium output by 400 billion?
A) 3% B) 6% C) 9% D) 18%
A year over year ________ in the buying power of money means that definitely ________ from one year to the next
A) decrease; the price level increased B) increase; inflation increased C) decrease; inflation increased D) increase; the price level increased E) Both answers A and C are correct.