When the interest rate decreases, the opportunity cost of holding money
a. increases, so the quantity of money demanded increases.
b. increases, so the quantity of money demanded decreases.
c. decreases, so the quantity of money demanded increases.
d. decreases, so the quantity of money demanded decreases.
C
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If the price of a motorcycle is $5,000 . and workers who make motorcycles earn a wage rate of $50, how many workers will be hired when the labor market is in equilibrium?
a. There is not enough information to determine how many would be hired. b. Hiring will continue until the price falls to $50 . c. Hiring will continue until the wage rate rises to $5,000. d. Hiring will continue until the MRP of the worker is greater than zero. e. Hiring will continue until the MPP of the last worker is 0.01 motorcycles.
One feature of pure monopoly is that the demand curve:
A. is vertical. B. slopes downward. C. is horizontal. D. slopes upward.