A monopolist will hire fewer workers than a competitive firm, other things being equal, because
A) the monopolist exploits labor and other types of producers do not.
B) the monopolist must take account of the declining product price that must be charged in order to sell more units of the product.
C) the monopolist is more efficient.
D) diminishing marginal productivity of labor is more severe for a monopolist.
B
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For the classical economists, the quantity theory of money provided an explanation of movements in the price level. Changes in the price level result
A) from proportional changes in the quantity of money. B) primarily from changes in the quantity of money. C) only partially from changes in the quantity of money. D) from changes in factors other than the quantity of money.
An example of targeted government spending is its spending on
a. education b. police protection c. national defense d. space exploration e. welfare
Suppose that growth in output that can be attributed to growth in labor and capital is 6%. If output grows at a rate of 6%, it must be the case that
A. growth in capital exceeds growth in labor. B. the economy is not experiencing technological progress. C. the economy is experiencing technological progress. D. growth in labor force exceeds growth in capital.
An insect that is resistant to currently used pesticides has infested the cotton crop, and this year's crop is only half of what was produced last year. You accurately predict that this
A. will shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the demand for cotton will fall. B. will shift the supply curve of cotton to the right, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease. C. will shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease. D. will shift the supply curve of cotton to the right, the equilibrium price of cotton will increase, and the demand for cotton will fall.