Which of the following is true of an intermediate good?
a. It is of no value to the seller
b. It is of no value to the buyer.
c. It is purchased for household production.
d. It helps produce another good.
e. It is sold at a discounted price by firms.
d
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A 2% wage increase for teachers or police officers is:
a. usually offset by higher output per worker. b. leads to increases in municipal budgets. c. indicates that teachers and police have became more selfish. d. leads to more personalized service.
The period of growth in real GDP between the trough of the business cycle and the next peak is called the:
A. recessionary phase. B. recovery phase. C. contractionary phase. D. cyclical phase.
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.
The variety of products and product features that consumers may choose from in monopolistically competitive industries:
A. at least partially offsets the economic inefficiencies of this market structure. B. leads to an optimal allocation of resources in the market structure. C. makes the demand curves facing firms in these industries more elastic. D. guarantees that firms produce at full-capacity output levels.