Explain why a monopsony's marginal cost of labor is greater than the wage rate
What will be an ideal response?
If the monopsony wants to hire more labor, it must offer a higher wage to the additional worker PLUS it must offer that same higher wage to all workers that were previously hired at a lower wage.
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Explain how the labor force participation rate, the unemployment rate, and the percentage of the labor force employed part time change in a recession
What will be an ideal response?
The central bank which is generally regarded as the most independent in the world because its charter cannot be changed by legislation is the
A) Bank of England. B) Bank of Canada. C) European Central Bank. D) Bank of Japan.
All the below choices are examples of promoting a firm's product, except
a. Advertising b. Pricing c. Discount coupons d. End-of-aisle displays
Which of the following would reduce the ability of the self-correcting mechanism to direct an economy out of a recession quickly?
a. a decrease in the real rate of interest b. resource prices that are inflexible in a downward direction c. an increase in aggregate demand d. a low level of savings