A price maker is a firm that:
A) has the power to affect the price of the product it sells.
B) earns economic profits in both the short run and the long run.
C) can sell any quantity of its product at the prevailing market price.
D) sells its products at a price equal to the marginal cost of production.
A
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If we compare the wage rate and the level of employment achieved in a competitive labour market with those in a monopsonistic labour market, the latter will generate
A) a lower level of employment and a lower wage. B) the same outcomes as in a competitive labour market. C) a higher level of employment and a higher wage rate. D) a lower level of employment and a higher wage rate. E) a higher level of employment and a lower wage.
The nominal interest rate is 7%, today's price level is 150, and you expect the price level to be 156 one year from now. What is the expected inflation rate? What is the expected real interest rate?
What will be an ideal response?