What happens to the MP of labor when the market price of the good produced increases?
a. Increases proportional to price.
b. Decreases proportional to price.
c. Stays the same.
d. Falls because quantity demanded falls.
c
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The figure above shows a labor market. If there is a monopsony in this labor market, the monopsony pays a wage rate
A) greater than the value of marginal product of labor. B) equal to the value of marginal product of labor. C) less than the value of marginal product of labor. D) equal to the average revenue product of labor.
The private financial market where banks borrow and loan reserves to meet the minimum research requirements is called:
A) federal funds market. B) loanable funds market. C) discount loans market. D) repo market.
Which of the following statements is TRUE about the relationship among external, internal and social costs?
A) Social costs will always be higher than external costs. B) Social costs will always be higher than internal costs. C) Internal costs will always be higher than external costs. D) Internal costs will never equal external costs.
Which of the following is an example of an automatic stabilizer?
A. a temporary tax rebate B. cost of living adjustments to Social Security payments C. unemployment benefits D. all of these