A monopsonist hires the amount of labor where the marginal revenue product of labor equals the:

A monopsonist hires the amount of labor where the marginal revenue product of labor equals the:
 a. price of the monopsonist's product.
  b. wage rate.
  c. marginal factor cost of labor.
  d. marginal product of labor.

QUESTION 2

The Golden Age of fiscal policy was during _____.
 a. the 1920s
 b. World War II
 c. the Eisenhower years
 d. the 1960s
 e. the Reagan administration years

QUESTION 3

Which of the following is likely to be excluded from the gross domestic product (GDP) of a country?
 a. The value of the drugs being sold in a vacant lot
 b. The value of the drugs being sold in a pharmacy
 c. A doctor treating a patient in a hospital
 d. The value of a new house bought by an individual
  e. The value of new furnitures bought by an individual

QUESTION 4

A monopsonist's marginal factor cost (MFC) curve lies above its supply curve because the firm must:
 a. lower the product price to sell more.
  b. increase the price of its product to sell more.
  c. decrease the factor price to hire more.
  d. lower the factor price to hire more.
  e. none of these.

QUESTION 5

During a recession, unemployment insurance ensures that:
 a. the disposable income of those who are unemployed will increase above the usual level.
  b. disposable income does not fall by as much as GDP decreases.
 c. disposable income increases as GDP falls.
 d. the marginal propensity to consume increases.
 e. the marginal propensity to consume decreases.

QUESTION 6

Lois sells ten sweaters she had knitted to a retail store. The gross domestic product (GDP) of her country _____.
 a. will increase
 b. will decrease
 c. will remain unaffected
 d. will increase only if the sweaters are as good as the sweaters sold by other retailers
  e. will increase if the price of each sweater is less than the cost of inputs required