Economists define a labor market with only one buyer to be
a. a monopoly
b. an oligopoly
c. a monopsony
d. perfectly competitive
e. backward bending
C
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An open market purchase of government securities by the Fed will cause which of the following?
A) an excess quantity of reserves supplied and a reduction in the federal funds rate B) an excess quantity of reserves demanded and an increase in the federal funds rate C) an excess quantity of reserves demanded and a reduction in the federal funds rate D) an excess quantity of reserves supplied and an increase in the federal funds rate
The huge national debt of the United States is likely to lead to bankruptcy of the national government
a. True b. False Indicate whether the statement is true or false
Answer the next question based on the following payoff matrix for a duopoly. The numbers indicate the profit in thousands of dollars for a high-price or a low-price strategy. Firm X? High PriceLow PriceFirm YHigh priceX = $625X = $725??Y = $625Y = $475?Low priceX = $475X = $400??Y = $725Y = $400Refer to the above payoff matrix. Assume that firm Y adopts a low-price strategy while firm X maintains a high-price strategy. Compared to the results from a high-price strategy for both firms, firm Y will now:
A. lose $150,000 in profit and firm X will gain $150,000 in profit. B. gain $100,000 in profit and firm X will lose $150,000 in profit. C. gain $150,000 in profit and firm X will lose $100,000 in profit. D. gain $525,000 in profit and firm X will lose $275,000 in profit.
The price elasticity of demand for soybeans is defined as the
A. Unit change in quantity demanded of soybeans times the unit change in the price of soybeans. B. Unit change in soybean price divided by the unit change in quantity demanded of soybeans. C. Percentage change in quantity demanded of soybeans divided by the percentage change in the price of soybeans. D. Percentage change in quantity demanded of soybeans times the percentage change in soybean price.