In the IS-LM model, changes in taxes initially affect planned expenditures through
A. Consumption.
B. Investment.
C. Government spending.
D. the interest rate
Answer: A. Consumption.
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For a monopsonist the marginal cost of increasing its workforce will always be greater than the wage rate because
A) there is not good factor substitution in a monopsony. B) the wage rate offered the newest employee must be paid to all workers. C) the industry will be a closed shop. D) a normal rate of return must be paid to the owner.
Quantitative evidence on federal land policy has led current economic historians to conclude that
a. the policy was inefficient and reduced total output. b. the policy was largely inefficient, with evidence of increased output only found on large farms. c. the Homestead Act allowed western farmers to enjoy rising agricultural prices for most of the post-bellum period. d. average rates of return on western agricultural investments were comparable to those in manufacturing.
Government spending (G)
What will be an ideal response?
The increased willingness of employers to hire strikebreakers, and the increased willingness of workers to cross picket lines, help explain why unions have grown more reluctant to strike
Indicate whether the statement is true or false