In the personal computer market, some large manufacturers are able to buy computer components (e.g., disk drives, flat-screen monitors, and memory chips) and software at lower prices than smaller firms in the market. This outcome indicates that the large firms enjoy some degree of ________ in this market. A) monopoly power B) oligopoly power C) […]
If technological breakthroughs in the internet cause large numbers of firms to consider investment projects they hadn’t previously thought of, then A) a shift in the supply of loanable funds will cause interest rates to rise. B) a shift in the supply of loanable funds will cause interest rates to fall. C) a shift in […]
A high marginal tax rate reduces work incentives. Indicate whether the statement is true or false ANSWER T
Bridge Coal Company is the only employer in a remote and mountainous region of the country, so the firm is the monopsony buyer of labor in the market. If the price of coal increases, then the firm’s quantity of labor demanded ________ and the equilibrium wage ________. A) decreases, decreases B) decreases, increases C) increases, […]
The breakeven income level can be found by multiplying the income floor by the marginal tax rate and then adding disregarded income. Indicate whether the statement is true or false ANSWER F
According to the evidence, the elderly poor were spendthrifts when they were working. Indicate whether the statement is true or false ANSWER F
Social Security benefits alone assure an adequate income for the elderly. Indicate whether the statement is true or false ANSWER F
Refer to Figure 10.3. What is the competitive price? A) P1 B) P2 C) P3 D) P4 E) P5 ANSWER D
If we start to think that Medicare will pay for all of our medical needs as we age, then our likely actions will lead to: A) a shift in the supply of loanable funds will cause interest rates to rise. B) a shift in the supply of loanable funds will cause interest rates to fall. […]
Only a small number of people make provisions for old age in spite of statistical evidence showing the diminished income during retirement. Indicate whether the statement is true or false ANSWER T
