A monopsonist faces an upward-sloping labor supply curve. This means that his marginal expenditures on labor are
A) greater than the wage.
B) equal to the wage plus the increase in the wage resulting from hiring one more unit of labor hired.
C) greater than the wage because hiring more workers requires to pay all workers more.
D) All of the above.
D
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Countries that have high rates of savings also have
A) high rates of investment. B) low rates of investment. C) stock market bubbles. D) low rates of growth. E) no international trade.
If the economy is in a liquidity trap, then:
a. fiscal policy can still stimulate the economy through lower interest rates. b. monetary policy cannot stimulate the economy by lowering interest rates. c. the precautionary demand for money is falling. d. all of the above.
An increase in the corporate profits tax would shift the demand for loanable funds curve to the left
a. True b. False
Suppose you recently took a pay cut of 2% at your job. You expect the price level to fall by 3% during this year. What would be the impact on your real wage?
a. The real wage would fall by 3% b. The real wage would rise by 3% c. The real wage would fall by 1% d. The real wage would rise by 1% e. The real wage would be unchanged