Jason has been holding his retirement savings in a safe in his house. Currently the economy is experiencing a falling price level. He can conclude that:
a. the real purchasing power of his money is remaining constant
b. the real value of his savings is increasing as long as the price level is falling.
c. the real value of his savings is decreasing as long as the price level is falling.
d. none of the above are true.
b
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A monopsonist that wants to hire more labor must pay more for the new labor than it is currently paying and increase the wage rate of all existing employees because
A) the demand curve for labor is inelastic. B) of labor unions. C) the supply of labor is upward sloping. D) of competition in the labor market.
Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice. 
Which of the following statements is true?
A. For Lee, seeing a documentary is a dominant strategy. B. Lee does not have a dominant strategy. C. Lee's dominant strategy depends on Jordan's choice. D. For Lee, seeing a comedy is a dominant strategy.