The above figure shows the market for labor. The employer is a monopsony. The firm maximizes its profit by hiring
A) 800 hours of labor at a wage of $5 per hour.
B) 600 hours of labor at a wage of $10 per hour.
C) 400 hours of labor at a wage of $5 per hour.
D) 200 hours of labor at a wage of $5 per hour.
C
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The Law of Diminishing Marginal Benefit states that:
A) the demand for a commodity declines as its price increases. B) the demand for a commodity is more dependent on income than on price. C) the willingness to pay for an additional unit declines as more of a good is consumed. D) lower levels of consumption give lower level of utility.
During the twentieth century, the largest budget deficits as a percentage of GDP occurred
A) during the 1980s. B) during the Vietnam war. C) during the 1990s. D) during World Wars I and II.
The largest liability of the Fed from those on this list is
A) U.S. Treasury securities. B) mortgage-backed securities. C) loans to depository institutions. D) currency outstanding.
It is possible through trade for a country to consume a combination of goods that lies beyond its production possibilities frontier
Indicate whether the statement is true or false