The figure above shows a labor market. If there is a monopsony in this labor market, then increasing the minimum wage from $3 per hour to $5 per hour
A) will increase the quantity of labor employed.
B) will leave unchanged the quantity of labor employed.
C) will decrease the quantity of labor employed.
D) could increase, decrease, or leave unchanged the quantity of labor employed.
A
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In a prisoner's dilemma game, each person will pick
A) their best outcome given what the other person will do. B) their best outcome. C) their worse outcome. D) their best outcome after consulting with the other person.
The De Beers Company blocked competition
A) by controlling the supply of most of the world's high-quality bauxite, the mineral used to produce aluminum. B) in the diamond market by controlling the output of most of the world's diamond mines. C) in the market for fresh and frozen cranberries because it controls about 80 percent of the cranberry crop. D) because it has lower production costs than other department stores due to economies of scale.
Countercyclical fiscal policy is viewed by most economists
a. as the perfect instrument for preventing boom and bust economies b. as a useful but imperfect instrument for reacting to boom and bust economies c. having no impact in the short run or long run. d. doing more damage than good in both the short run and long run. e. as having an impact only in the long run.
Benefits from specialization and trade exist even if the number of workers in trading nations is altered
a. True b. False Indicate whether the statement is true or false