In a bilateral monopoly, the wage rate that is determined in the market
A. is the same as in a perfectly competitive market.
B. is equal to MRP.
C. is indeterminate.
D. is equal to MFC.
Answer: C
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Falling interest rates can
A) raise the cost of buying new homes and fewer new homes will be purchased. B) lower the cost of buying new homes and fewer new homes will be purchased. C) raise the cost of borrowing for firms and decrease investment. D) increase a firm's stock price, which causes firms to issue more stock shares, and thus increases funds for investment.
If the centrally planned economy of Rowboat dismantles central controls before institutions such as property rights are in place, instability will most likely result
a. True b. False
Consider the accompanying figure representing the labor market below.
If a minimum wage of $12 per hour is imposed in this labor market, then:
A. 400 workers will earn $12 an hour. B. worker surplus will fall. C. total earnings will rise. D. 200 workers will lose their jobs.
In order to predict changes in aggregate demand, it must be possible to forecast
A. changes in the demand for investment goods. B. changes in the demand for consumer goods. C. changes in the demand for money. D. All of the choices are correct.