In a labor market, employment
A) and the wage rate are higher when the market is a monopsony than when the market is competitive.
B) is higher and the wage rate is lower when the market is a monopsony than when the market is competitive.
C) is lower and the wage rate is higher when the market is a monopsony than when the market is competitive.
D) and the wage rate are lower when the market is a monopsony than when the market is competitive.
D
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The above figure shows four different markets with changes in either the supply curve or the demand curve. Which graph best illustrates the market for coffee after severe weather destroys a large portion of the coffee crop?
A) Graph A B) Graph B C) Graph C D) Graph D
Suppose the supply and demand of land for natural gas extraction are imperfectly elastic. Given that coal is a potential substitute for natural gas in energy applications, a change in the price of coal may shift the demand curve for natural gas
What happens to the economic rents assigned to land on which natural gas is extracted if the price of coal declines? A) Rents increase B) Rents are positive and remain unchanged C) Rents decrease D) Rents are zero before and after the change
Which of the following is true about the market equilibrium? a. As the price increases, the quantity demanded and the quantity supplied increases
b. As the price increases, the quantity demanded and the quantity supplied decreases. c. As the price increases, the quantity demanded increases and the quantity supplied decreases. d. As the price increases, the quantity demanded decreases and the quantity supplied increases. e. As the price increases, neither the quantity demanded nor quantity supplied change.
Positive statements are
a. prescriptive. b. claims about how the world should be. c. claims about how the world is. d. made by economists speaking as policy advisers.