Which of the following is not true about a monopsonist?
A. It can set the wage rate and hire any desired number of workers at that wage.
B. It is the only buyer of labor in a market.
C. It usually extracts rents from its monopsony power.
D. It determines the optimal employment-wage rate combination by equating the marginal revenue product of labor to the marginal cost of labor.
Answer: A
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Refer to Figure 4-1. If the market price is $2.50, what is the consumer surplus on the first ice cream cone?
A) $0.50 B) $1.00 C) $3.50 D) $9.00
Debtors gain and creditors lose when
A) the anticipated rate of inflation is greater than the actual rate of inflation. B) the anticipated rate of inflation is less than the actual rate of inflation. C) the anticipated rate of inflation is the same as the unanticipated rate of inflation. D) the unanticipated rate of inflation is zero.