A monopsony owner believes that hiring an additional worker would increase the company's revenue by $150 per day. We can conclude that the monopsony pays its workers:
A. more than $150 per day.
B. exactly $150 per day.
C. less than $150 per day.
D. exactly $75 per day.
Answer: C
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The "natural rate of unemployment" is
a. the highest unemployment rate that can be tolerated b. affected by social programs c. not accepted among economists d. likely to be above 10 percent e. not an economic concept
If U.S. quotas on imported sugar were eliminated,
A. The world price of sugar would rise. B. The supply of sugar in the United States would shift to the right and sugar prices would fall. C. The demand for sugar in the United States would shift to the left and prices would fall. D. The supply of sugar in the United States would shift to the left and prices would rise.
The underlying reason that there are unattainable points on a production possibilities frontier diagram is that there
A. is a scarcity of resources within a fixed level of technology. B. is unemployment of resources. C. are always choices that have to be made. D. is government.
An important distinction between perfect competition and monopoly is that in
A. perfect competition, the firm is the industry. B. monopoly, the firm faces the market demand curve. C. monopoly, the firm produces less than the total quantity supplied. D. perfect competition, there is no distinction between the firm and the industry.