Voluntary exchange ________ economic efficiency because neither the buyer nor the seller would agree to a trade unless ________
A) increases; they both benefit
B) increases; only one party benefits
C) decreases; neither benefit
D) decreases; they both benefit
Answer: A
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Suppose that workers develop a greater taste for leisure, and thus require more time away from work. What is likely to happen to wages and the quantity of labor hired?
A) wages decrease, quantity of labor hired increases B) wages increase, quantity of labor hired decreases C) wages increase, quantity of labor hired increases D) wages decrease, quantity of labor hired decreases
In Figure 11.3, the change in investment spending is represented as the distance between points
A) C0 and C1. B) a1 and y1. C) a0 and a1. D) y0 and y1.
According to the above table, if the marginal revenue product is $48, how many workers will the profit maximizing monopsonist hire?
A) 5 B) 6 C) 7 D) 8
Changes in prices of a good causes
a. Movement along the demand curve b. Movement along the supply curve c. No effect to either curve d. Both a and b