Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth.
B. a change in society's preferences for motorcycles versus hybrid cars.
C. a reduction in unemployment.
D. an improvement in technology.
Answer: B
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The profit-maximizing level of employment by the monopsonist in the labor market shown below will be:
A. A
B. B
C. C
D. D
A currency drain is
A) when the Fed buys securities, but it is not when the Fed sells securities. B) when the Fed raises the required reserve ratio. C) an increase in currency held outside banks. D) when the Fed either buys or sells securities. E) when the Fed sells securities, but it is not when the Fed buys securities.
Because a monopsony is the only buyer in a particular market, the
A) supply of labor to the monopsony is perfectly elastic. B) supply of labor to the monopsony is perfectly inelastic. C) supply of labor curve faced by the monopsony is upward sloping. D) supply of labor curve faced by the monopsony is downward sloping.
Two plausible hypotheses to explain the productivity slowdown are
A) measurement problems and adjustments to new technologies. B) large government budget deficits and large balance of trade deficits. C) globalization of capital markets and reductions in tariffs. D) adjustments to new technologies and failures in the educational system.