If a monopsonist offers a wage of $6, he finds that 1,200 people are willing to work for him. This means that the
a. marginal labor cost is $6
b. marginal labor cost is $200
c. total labor cost is $1,200
d. total labor cost is $7,200
e. $6 wage is too high
D
You might also like to view...
A bank's required reserves are calculated by multiplying ________
A) its deposits by the required reserve ratio B) the sum of its deposits and cash in its vault by the required reserve ratio C) cash in its vault by the required reserve ratio D) the gold in its vault by the required reserve ratio
Bonds issued by state and local governments are called ________ bonds
A) corporate B) Treasury C) municipal D) commercial
Standard economic theory suggests which of the following in terms of labor migration across states in the United States?
A. Workers are likely to migrate from low-wage states to high-wage states. B. Older workers are more likely to migrate than are younger workers. C. Workers migrate randomly. D. Workers are likely to migrate from high-wage states to low-wage states. E. Workers migrate at most twice per lifetime.
The financing of a government deficit increases interest rates and, as a result, reduces investment spending. This statement describes:
A. the net export effect. B. the crowding-out effect. C. the supply-side effects of fiscal policy. D. built-in stability.