When compared to perfect competition, in a monopsony
A. there is deadweight loss.
B. there is no deadweight loss.
C. consumer surplus decreases.
D. the price is lower and the quantity is higher.
Ans: A. there is deadweight loss.
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The cost of producing an additional unit of a good or service that is borne by the producer of that good or service
A) always equals the benefit the consumer derives from that good or service. B) equals the cost borne by people other than the producer. C) is the marginal private cost. D) is the external cost. E) is the marginal social cost.
Explain whether you agree or disagree with the following statement: "The reason that inflation is bad is because it increases the cost of living—the costs of goods and services we buy—without increasing income in general."
What will be an ideal response?
A tax cut of $12 billion will have less effect on the economy than an increase in government purchases of $12 billion.
Answer the following statement true (T) or false (F)
An American insurance company hires a call center in India to handle customer service calls in order to cut costs. Other things equal, this will ________ of the United States
A) decrease the financial account balance B) decrease net exports C) decrease the capital account balance D) increase the current account balance