If a town has a monopsony, this means:
a. there is only one employer.
b. price discrimination takes place.
c. goods are priced too high.
d. no unions can exist.
e. excess profits are being made
a
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Government debt ________ the amount of savings available to firms and thus ________ the amount of capital in the economy
A) decreases; increases B) increases; decreases C) decreases; decreases D) increases; increases
Discouraged workers are included in labor force figures, but not in unemployment figures
a. True b. False Indicate whether the statement is true or false
Suppose that a sharp downturn in the price of a country's prime manufacturing product results in a terrible recession and a massive decline in the general income level of the citizens. Other things constant, what would be the recession's most probable effect on money demand in the country?
a. People will hold more money for any purpose, resulting in a decline in money demand. b. Local M1 money demand will rise. c. The transactions demand for money will fall such that the quantity of money demanded will be lower at any given interest rate level. d. The speculative demand for money will fall, causing a downward movement along the money demand curve. e. The precautionary demand for money will increase, causing an upward shift in the money demand curve.
The government is undertaking a policy to deal with a monopoly. As a result, the monopoly's ATC curve is shifting upward. Most likely, which of the following policies is being used?
a. antitrust action b. a regulatory commission sets a fair price c. a regulatory commission sets a price equal to marginal cost d. laissez-faire e. encouraging concentration