Which of the following is not correct?
A. Other things equal, a monopsonist will pay a lower wage rate than will a firm hiring labor
competitively.
B. A monopsonistic employer will pay workers a wage rate equal to their MRP.
C. A purely competitive seller will pay workers a wage rate equal to their MRP.
D. An imperfectly competitive seller will employ additional workers as long as the MRP of
additional workers exceeds their MRC.
Answer: B
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In the Keynesian system, an increase in the money stock would
a. increase the interest rate, which, in turn, would increase aggregate demand and income. b. decrease the interest rate, which, in turn, would decrease aggregate demand and income. c. decrease the interest rate, which, in turn, would increase aggregate demand and income. d. decrease the interest rate but would have no effect on aggregate demand and income.
Defining global poverty in the context of American standards would classify most people in the developing world as poor
Indicate whether the statement is true or false
At higher rates of interest
A. households save more and businesses invest less. B. households save more and businesses invest more. C. households save less and businesses invest less. D. households save less and businesses invest more.
In analyzing land rent, David Ricardo constructed a model based on
A. perfectly elastic demand for land. B. land being available in infinite quantities. C. the supply of land being perfectly inelastic. D. a perfectly elastic supply of land.