At a higher wage rate:
a. the opportunity cost of working increases.
b. the opportunity cost of leisure increases.
c. the opportunity cost of working decreases.
d. the opportunity cost of leisure decreases.
b
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Which of the following characterizes the Fed's ability to prevent recessions?
A) The Fed is incapable of changing aggregate demand through its monetary policy tools. B) The Fed is able to "fine tune" the economy and entirely eliminate recessions. C) The Fed is able to eliminate the business cycle and achieve absolute price stability. D) The Fed is able to keep a recession shorter and milder than it would otherwise be.
In a monopolistically competitive market, as the number of product variants decreases, the price of a particular firm's product is likely to ________ because the demand for each variety becomes more
A. increase; inelastic. B. increase; elastic. C. decrease; elastic. D. decrease; inelastic.
There is widespread agreement across the political spectrum that the only way to break the cycle of poverty and welfare dependency is to
A. provide abortion on demand. B. put every able-bodied person to work. C. enact a negative income tax. D. throw everyone off welfare.
Briefly describe the three-step process for the monopolist.
What will be an ideal response?