In the above table, if the marginal revenue product is $18, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?
A. 3; $18
B. 5; $18
C. 4; $16
D. 3; $14
Answer: D
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When a price ceiling is set below the equilibrium price, the quantity supplied ________ the quantity demanded and ________ exists
A) is less than; a surplus B) is less than; a shortage C) is greater than; a surplus D) is greater than; a shortage E) equals; an equilibrium
A wealth tax can be justified because it
A. helps to correct certain (inevitable) problems that arise in the administration of an income tax. B. the higher an individual's wealth, the greater his or her ability to pay, other things - including income - being the same. C. reduces the concentration of wealth, which is desirable socially and politically. D. are payments for benefits that wealth holders receive from government. E. all of these answer options are correct.
A rise in the real exchange rate is called
A) a real depreciation. B) a real appreciation. C) a real bargain. D) a real devaluation.
The ratio of the liabilities of a financial institution to equity capital is called
A) leverage. B) assets. C) liabilities. D) equity.