For a monopsonist: (Multiple Choice)

For a monopsonist:
 a. wage > TWC.
  b. wage > MFC.
  c. wage = MFC.
  d. wage = MRP.
  e. wage < MFC

QUESTION 2

Which of the following is true of the Golden Age of fiscal policy of the 1960s?
 a. Fiscal policy was used to prevent output from expanding in 1964.
 b. Lyndon B. Johnson cut income tax rates to reduce inflationary pressures in the economy
  c. A tax cut was introduced to increase savings and unemployment.
 d. A tax cut increased disposable income and consumption.
 e. The unemployment rate rose by 5 percent for the first time in seven years

QUESTION 3

Depreciation refers to a decrease in the value of a durable good caused by:
 a. an increase in the price level.
  b. changes in the interest rate.
 c. wear and tear over time.
 d. changes in tax laws.
 e. a decrease in its resale value.

QUESTION 4

For a monopsonist, the supply of labor facing the firm is:
 a. an insignificant portion of the market supply.
  b. perfectly horizontal.
  c. downward sloping.
  d. the summation of each firm's demand for labor.
  e. identical to the supply curve facing the market.

QUESTION 5

Which of the following was a successful application of fiscal policy in the United States?
 a. Roosevelt's strategy in combating the Great Depression
  b. The tax cut of 1964
 c. The temporary tax surcharge of 1968
 d. The battle against stagflation during the 1970s
 e. The large tax cut of 1981