A monopsony will hire another worker if the
A) marginal cost of labor exceeds the value of marginal product.
B) marginal cost of labor is less than the value of marginal product.
C) marginal cost of labor is less than the wage rate.
D) wage rate exceeds the value of marginal product.
B
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The Congressional Budget Office estimates that the Patient Protection and Affordable Care Act (ACA) will
A) increase federal government spending by about $2 trillion over 10 years. B) cost the government significantly more than the additional taxes and fees enacted under the law will bring in. C) actually reduce government spending over a 20 year period. D) eliminate the budget deficit within 10 years.
The law of one price holds exactly only if
A) buyers have complete information. B) antitrust laws are being enforced. C) it is impossible for buyers to resell the good. D) transactions costs are zero.
Costs associated with economic growth include all of the following EXCEPT
A) environmental pollution. B) psychological problems such as depression. C) urban congestion. D) improved health care.
The reason individual homeowners usually do not hire a private contractor to fill the potholes on their street is because:
a. it costs too much. b. the value to the neighborhood exceeds the cost of repair. c. others who use the street will be free riders. d. they do not trust the government. e. there are negative externalities associated with the repair.