Multiple Choice Questions:
1. Monopsony power will not be reduced,
a. The lower are search costs.
b. The lower are movement costs.
c. The more potential employers there are in an area.
d. By any of these changes.
2. Labor union membership has declined in part due to
a. A shift in workers from manufacturing to the service sector.
b. Deregulation in unionized industries.
c. Increasing global competition.
d. All of the preceding.
3. The distinguishing feature of the land market is that
a. The supply curve is highly inelastic.
b. The supply curve is highly elastic.
c. The demand curve is highly inelastic.
d. The demand curve is highly elastic.
4. The rent paid for land currently used to graze cattle would increase if
a. The productivity of the land in cattle grazing increased.
b. People decided to eat more red meat.
c. Oil deposits were discovered under the land.
d. Any of the preceding occurred.
5. An increase in the demand for land will
a. Increase the price of land and increase the quantity of land supplied.
b. Increase the price of land but not change the quantity of land supplied.
c. Increase the quantity of land supplied but not change the price of land.
d. Do none of the preceding.
6. Economic rent
a. Applies as a concept to land.
b. Is the payment to a resource in excess of its opportunity cost.
c. Will increase when the demand for input increases, if supply is perfectly inelastic.
d. Does all of the preceding.
7. At low levels of interest, borrowers will want to borrow ______ and suppliers of funds will want to supply ________.
a. More; less
b. Less; more
c. More; more
d. Less; less