In a perfectly competitive labor market,
a. some workers may be prevented from leaving the labor market
b. workers compete for employment opportunities
c. workers usually receive wages that are greater than their marginal revenue product
d. firms view all workers as being identical
e. there are relatively few sellers of labor services
D
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Which of the following is an example of adverse selection?
A) Overgrazing of a common piece of land B) Passengers travelling in a subway without a ticket C) A customer buying a defective appliance from a used goods market D) The generation of a harmful chemical during the production of a good
Which of the following would constitute contractionary monetary policy by the Fed?
a. An increase in income tax rates, a cut in government spending, and an elimination of the investment tax credit b. Open market sales of government securities, an increase in the discount rate, and an increase in reserve requirements c. An increase in tariffs on imported goods and a decrease in foreign aid d. Open market purchases of government securities, a cut in the discount rate, and an increase in reserve requirements
The velocity of money is the
a. rate at which the price index for consumer goods rises. b. multiple by which an increase in government expenditures will cause output to expand. c. average number of times a dollar is used to buy goods and services included in GDP. d. number of times a dollar is taken out of the country during a year.
Refer to the graph shown. The profit-maximizing monopolist would be:
A. making zero economic profits. B. earning accounting but not economic profits. C. making economic profits. D. sustaining a loss.