A firm's demand curve for labor coincides with the marginal factor cost of labor curve.

A firm's demand curve for labor coincides with the marginal factor cost of labor curve.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

One of the difficulties in using discretionary fiscal policy effectively is that the legislative decision-making process is sometimes very long and drawn out.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

Imports are leakages from the circular flow of income and expenditure model.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

A monopsonist will hire more workers than will be hired in a competitive labor market.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

The natural rate of unemployment is that rate at which the economy achieves its potential real GDP.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

Taxes are injections into the circular flow of income and expenditure model.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 7

If a monopsonist's labor supply curve is positively sloped, the marginal factor cost (MFC) will be below the wage rate.
 a. True
  b. False
  Indicate whether the statement is true or false