When contemplating the purchase of a resource, the pure monopsonist should do which of the following to maximize profit?
A) Purchase enough to make the marginal expenditure equal to the marginal revenue product.
B) Purchase enough to make the average expenditure equal to the marginal revenue product.
C) Pay a wage equal to the value of MRP at the intersection of MRP and ME curves.
D) Pay a wage equal to the value of MRP at the intersection of AE and MRP curves.
A
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An international agency uses the prices of iPads in different countries to compute the exchange rate between the currencies of these countries. Which of the following measures is based on a similar idea?
A) The midcap index B) The Human Development Index C) The Big Mac Index D) The GDP deflator
One reason why property rights help achieve an efficient level of pollution is because property rights
A) force the marginal private cost to equal the marginal social cost. B) force the marginal social cost to zero. C) force the marginal external cost to a lower level than marginal private cost. D) eliminate marginal private costs. E) change the marginal external cost so that they are equal to the marginal social benefit.
If a customs union leads to a large amount of trade diversion relative to trade creation, it may be beneficial to world welfare
Indicate whether the statement is true or false
The following are reasons for studying randomized controlled experiment in an econometrics course, with the exception of
A) at a conceptual level, the notion of an ideal randomized controlled experiment provides a benchmark against which to judge estimates of causal effects in practice. B) when experiments are actually conducted, their results can be very influential, so it is important to understand the limitations and threats to validity of actual experiments as well as their strength. C) randomized controlled experiments in economics are common. D) external circumstances sometimes produce what appears to be randomization.