If Inventory investment is lower than firms planned
A. actual investment must be negative.
B. actual investment is greater than planned investment.
C. actual and planned investment are equal.
D. actual investment is less than planned investment.
Answer: D
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If there is a monopsony operating in the labor market illustrated in the figure above, the equilibrium wage and quantity of labor hired is
A) $15 and 50 hours. B) $10 and 100 hours. C) $10 and 50 hours. D) $5 and 50 hours.
If information in the market for used motorcycles is symmetric and both buyers and sellers are equally ignorant, then
A) the market is efficient. B) both good and bad motorcycles will sell for the same price. C) if only good motorcycles are sold, the price would be higher. D) All of the above.
Refer to the above figure. Which panel shows a possible short-run equilibrium for monopolistic competition, but is not also a long-run equilibrium?
A) Panel A B) Panel B C) Panel C D) Panel D
If U.S. demand for imports increases it would be expected that the value of the dollar in international currency markets would tend to
A. increase. B. change in a manner that cannot be determined without additional information concerning the direction of the shifts in the demand for and supply of dollars. C. decline. D. remain unchanged.