If marginal benefit is less than marginal cost, output is inefficiently high
Indicate whether the statement is true or false
TRUE
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Intuitively, the marginal rate of substitution for X with Y tells us:
A. how much Y a consumer needs to compensate them for a one-unit decrease in X. B. how much X must be taken away from a consumer to compensate them for a one-unit increase in Y. C. how much X a consumer needs to compensate them for a one-unit decrease in Y. D. how much more Y the consumer will buy if the price of Y increases by $1.
When referring to GDP, which is not a common alternative designation economists use?
A. Aggregate Expenditure B. Net National Income C. National Income D. Total Output
Firm A is a monopsonist that faces a labor supply elasticity of 2.4 whereas Firm B is a monopsonist that faces a labor supply elasticity of 1.4. Which of these monopsonists has a higher markup over wage?
A) Firm A B) Firm B C) They both pay the same. D) It is impossible to tell which pays a higher wage.
A given industry, Z, is such that the 1-firm, 2-firm, 4-firm and 8-firm concentration ratios are the same. Based on this, we can conclude that Industry Z is
A) pure competition. B) monopolistic competition. C) oligopoly. D) pure monopoly.