In a monopsonistic market
A. employment is lower but wages are higher than in a comparable competitive market.
B. both employment and wages are lower than in a comparable competitive market.
C. both employment and wages are higher than in a comparable competitive market.
D. employment is higher but wages are lower than in a comparable competitive market.
Answer: B
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Without restrictions, the market supply curve is horizontal at P = 5, and the inverse demand curve for taxi cab rides is P = 20 - Q in a competitive market. Subsequently, only 10 taxi cabs are allowed in the market. This results in a deadweight loss of
A) 0. B) 5.5. C) 12.5. D) 25.
When a good is both rivalrous and nonexcludable the:
A. free rider problem may arise. B. tragedy of the commons may arise. C. good is likely a private good. D. good is likely an artificially scarce good.
Saving is
a. the sum of the funds people hold in their checking accounts. b. after-tax income that is not spent on consumption. c. always equal to consumption. d. equal to disposable income plus consumption.
Excessive leverage can be traced to lax regulation and inadequate laws.
Answer the following statement true (T) or false (F)