In the above table, if the market is perfectly competitive and unregulated, the equilibrium price will be
A) $50 per unit.
B) $60 per unit.
C) $70 per unit.
D) $110 per unit.
A
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If a binding price floor were placed in the market in the graph shown:
A. quantity demanded would exceed quantity supplied.
B. quantity supplied would exceed quantity demanded.
C. the demand curve would have to shift.
D. the supply curve would have to shift.
Which one of the following factors contributed to the decline in real output during the Great Depression?
a. deflation, which changed the terms of long-term contracts and discouraged long-term exchange b. inflation, which reduced the value of the dollar and eroded the savings of the elderly c. stable monetary policy, which caused business decision makers to lose confidence in the Fed's ability to fine-tune the economy d. establishment of the Federal Deposit Insurance Corporation
Because local banks earn fees for each loan, their role to:
A. create not many mortgages perfectly aligns with their incentives. B. properly assess the risk of each borrower is perfectly aligned with their incentive. C. properly assess the risk of each borrower is misaligned with their incentive. D. provide mortgage loans only to those with low credit scores is misaligned with their incentive.
The main difference between a monopsonist and a competitive buyer of labor is that
A) the monopsonist can hire as many workers as it wants at the going wage while the competitive firm must raise wages to hire additional workers. B) the competitive firm can hire as many workers as it wants at the going wage while the monopsonist can hire more workers at lower wages. C) the competitor can hire as many workers as it wants at the going wage while the monopsonist must raise wages to hire additional workers. D) the monopsonist can force wages down and still hire as many workers as it wants while the competitive firm must increase the wage rate to hire additional workers.