If a monopsonist offers a wage of $6, he finds that 1,200 people are willing to work for him. This means that the:
A. marginal factor cost is $6.
B. marginal factor cost is $200.
C. total wage cost is $1,200.
D. total wage cost is $7,200.
Answer: D
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Refer to the figure above. What is the market-wide consumer surplus when the market price of calculators is $3?
A) $600 B) $725 C) $1,000 D) $1,120
Historical data shows that if consumption increases by $80 billion when national income rises from $100 billion to $200 billion, then consumption will increase by less than $80 billion when national income rises from $200 billion to $300 billion
Indicate whether the statement is true or false
Explain how a profit-maximizing monopolist chooses its level of output and the price of its goods
If we assume a ten percent required reserve rate, and banks not holding any excess reserves and no change in currency holdings, an open market sale of $5 million of U.S. Treasury securities by the Fed, will result in deposits:
A. decreasing by $50 million. B. increasing by $5 million. C. not changing. D. increasing by $50 million.