The critical feature of a monopsonistic labor market is that the employer:
A. has a perfectly elastic demand curve for labor.
B. can hire any number of workers it chooses at the going wage rate.
C. faces an upsloping labor supply curve.
D. faces a perfectly inelastic labor supply curve.
Answer: C
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Refer to Figure 16-3. What prices are charged in the two markets?
A) price in market A = price in market B = $10 B) price in market A = price in market B = $5 C) price in market A = $10; price in market B = $15 D) price in market A = price in market B = $15
You can put your $100 in Bank A that pays 8% at the end of the year. You can also put your $100 in Bank B that pays 4% at the end of six months and then 4% again at the end of the year. You will keep your $100 and all interest in the bank
At the end of the year A) the total will be the same at both banks. B) the total at Bank A will be greater. C) the total at Bank B will be greater. D) the total could be larger at either bank.
John raises bees to pollinate his orchard. A couple of bees which escaped ended up pollinating his neighbor's orchard, so
A) John's neighbor has received an internal cost of John's bee-keeping. B) John's neighbor has received an external cost of John's bee-keeping. C) John's neighbor has received an external benefit of John's bee-keeping. D) None of the above is correct.
Which of the following is not a characteristic of pollution permits?
a. Prices are set by supply and demand. b. Allowing firms to trade their permits reduces the total quantity of pollution beyond the initial allocation. c. Real-world markets for pollution permits include sulfur dioxide and carbon. d. Firms for whom pollution reduction is very expensive are willing to pay more for permits than firms for whom pollution reduction is less expensive.