Determine whether each of the following statements is True, False or Uncertain. Give a brief explanation

for each answer.

1. In an attempt to keep unemployment rate below its natural rate, many Latin American countries

used expansionary fiscal and monetary policies heavily. These policy choices were the main reason

why these same countries entered difficult periods of high inflation, from which they struggled to

get out. [7 pts.]

2. If the number of employed workers in a country decreases, the unemployment rate in the country

will increase. [7 pts.]

3. An increase in the duration of unemployment should be linked to a decrease in flows in and out of

unemployment, if one is to keep unemployment constant. [7 pts.]

4. Workers reluctance to take nominal pay cuts offers a feasible explanation of why the Phillips Curve

relation breaks down when there is deflation. [7 pts.]

Question 14

For a monopsonist, the marginal factor cost is always:

equal to the wage rate.

less than the wage rate.

greater than the wage rate

the same as the labor supply.

the same as the labor demand.

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Question 17

A monopsonist will hire more workers than will be hired in a competitive labor market.

True

False

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Question 19 Which of the following statements is true about monopsony?

c and e.

c, d, and e.

Monopsonists exercise complete buying power.

Monopsonists maximize profit by setting MRP = MFC.

Monopsonists face the whole labor supply curve

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Question 20

A decrease in the price of the output will decrease the firm's demand for labor.

True

False

5.1 Price Elasticity of Demand and Price Elasticity of Supply Calculate the price elasticity of demand Question The table shows the price and quantity demanded for floor mats, Using the Midpoint Method, what is the price elasticity of demand between points B and C? Note: Remember to take the absolute value of the result and round to the nearest hundredth. Rounding should be done at the end of your calculation. Point Price Quantity A $10 500 B $13 480 C $16 460 D $19 440 $22 420QUESTION 4 Imperfect markets O a. occur when the buyer or seller has an influence on the price. O b. can't occur if there are many buyers and many sellers. c. always result in demand exceeding supply. O d. always result in supply exceeding demand.One drawback to advertising might be that it could easily (1) cause a monopolistically competitive firm to become a monopoly. 2) raise revenue but not increase demand. 3) decrease revenue and raise demand. (4) decrease costs and decrease demand. 5) raise costs but not increase demand. Question 13 (2 points) Product differentiation 1) is a common characteristic of a perfectly competitive market structure. 2) refers to firms' attempts to make real or apparent differences in essentially substitutable products look different in the minds of consumers. 3) refers to firms' attempts to make their products look the same as other products in the industry. 4) is employed only in a monopoly market structure. 5) refers to the advantage big firms have in research and developmentQuestion 10 2 pts Refer to Figure 2.2.1 above. At a price of $ 1.50, there is: OFan alternative equilibrium between supply and demand. O a surplus of coffee in the market. an excess of quantity demanded over quantity supplied. an excess of quantity supplied over quantity demanded. Question 11 2 pts Refer to Figure 2.2.1 above. If the price of $1.50 is a price imposed by the government, we can call it: a socially optimal equilibrium price. O a price floor. O a fiscal price. a price ceiling.Interpret elasticity of demand Question Suppose that a product's price p and the quantity demanded m are related through the pricedemand equation 3 -l 4001) = 8,000. It can be shown that demand is inelastic forp