For a monopsonist the marginal cost of increasing its workforce will always be greater than the wage rate because
A) there is not good factor substitution in a monopsony.
B) the wage rate offered the newest employee must be paid to all workers.
C) the industry will be a closed shop.
D) a normal rate of return must be paid to the owner.
Answer: B
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If Irv Goffman gets an $800 loan from the Durham National Bank and pays Alice Irby $800 to landscape his property, and she takes that $800 check from Irv and deposits it in the same Durham National Bank, then, with the legal reserve requirement of 20 percent
a. Durham National Bank will get $640 in new reserves b. Durham National Bank will have an additional $800 in demand deposits c. assets of the Durham National Bank will increase by $640 d. assets of the Durham National Bank will decease by $640 e. liabilities of the Durham National Bank will increase by $160
An unregulated market economy provides material wealth, but does not generate effective control of environmental damage
a. True b. False Indicate whether the statement is true or false
Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes to increase if number two grade potatoes are an inferior good?
a. an increase in consumer income b. a decrease in consumer income c. greater government restrictions on agricultural chemicals d. fewer government restrictions on agricultural chemicals
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.