The spending multiplier is:
a. 1 / (1 ? MPC).
b. 1 ? MPC.
c. MPC.
d. MPC / (1 ? MPC).
a
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When the market price is above equilibrium then ____ and when the market price is below equilibrium, then ____.
A. quantity demanded is greater than quantity supplied; quantity supplied is greater than quantity demanded. B. quantity supplied is greater than quantity demanded; quantity supplied is greater than quantity demanded. C. quantity supplied is greater than quantity demanded; quantity demanded is greater than quantity supplied D. the market is in equilibrium; the market is in equilibrium.
Other things remaining the same, which of the following is likely to increase both the wage rate and the number of workers hired in a steel-producing factory?
A) An increase in the opportunity cost of leisure B) A decrease in the opportunity cost of leisure C) The introduction of labor-saving technology in the factory D) The introduction of labor-complementary technology in the factory
Consider an auction with 1,000 risk-neutral bidders. It is known that these bidders have affiliated values. Based on this information, we know the expected revenues for the different auction types will be:
A. First-price, sealed-bid > Second-price, sealed-bid > English > Dutch. B. First-price, sealed-bid = Dutch > English > Second-price, sealed-bid. C. English > Second-price, sealed-bid > First-price, sealed-bid = Dutch. D. English = Second-price, sealed-bid = First-price, sealed-bid = Dutch.
Refer to the information provided in Figure 28.2 below to answer the question(s) that follow.
Figure 28.2Refer to Figure 28.2. Assume that the productivity of workers decreases as the wage rate decreases. The efficiency wage
A. would be above $10. B. could either be above or below $10. C. would equal $10. D. would be below $10.