Figure 5-4
Refer to . The figure illustrates an industry that generates
a.
external benefits.
b.
external costs.
c.
no externalities.
d.
economies of scale.
b
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In the United States, the primary agency responsible for foreign exchange intervention is
A) the U.S. treasury. B) the Federal Reserve. C) the exchange stabilization fund. D) the IMF.
Data in the following table refer to the purchase of a resource by a pure monopsonist. Let the resource be labor time L, measured in hundreds of hours per day
Units of Labor Marginal Average Marginal Revenue Input Expenditure Expenditure Product L ME AE MRP 1 10 10 16 2 12 11 15 3 14 12 14 4 16 13 13 5 18 14 12 6 20 15 11 7 22 16 10 8 24 17 9 a. Determine the profit maximizing purchase rate of labor for the monopsonist. b. If this market were not monopsonistic but competitive, what would be the purchase rate of labor time? c. Determine the equilibrium wage rate in both the monopsonistic and competitive markets?
In consumer equilibrium: a. the average utility from each dollar spent is the same
b. total utility cannot be increased by reallocating spending among the goods consumed. c. total utility obtained from the consumption of each product is at a maximum. d. the marginal utility from the last unit of each good consumed is the same.
An economic model is
a. a plastic scaled version of the economy b. a complete depiction of reality c. an abstraction of reality d. applicable to consumer behavior but not to producer behavior e. not an accepted tool of the economics profession