A monopsonistic employer's marginal resource (labor) cost curve:
A. is always more elastic than the labor supply curve.
B. coincides with the labor supply curve.
C. lies below the labor supply curve because the higher wage paid to an additional worker
must also be paid to all other employed workers.
D. lies above the labor supply curve because the higher wage paid to an additional worker
must also be paid to all other employed workers.
Answer: D
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Which economic question does the decision to give all of the butter the economy produces to the homeless answer?
a. What to produce? b. How to produce? c. For whom to produce? d. Who has a comparative advantage in butter production? e. Who has an absolute advantage in butter production?
According to the Keynesian view, capitalism
a. is a highly productive form of economic organization that works best when government intervention is least. b. experiences booms and busts because of the instability of private investment that is driven by fickle changes in business optimism. c. experiences booms and busts that are primarily the result of inappropriate monetary policy. d. experiences fluctuations in aggregate demand that cannot be controlled with fiscal policy.
Refer to the following graph. 
A monopolist's inefficiency per unit of output at the profit-maximizing level of output is limited to cost per unit:
A. C. B. A minus C. C. B minus C. D. A minus B.
Increased investment in infrastructure will shift
A. Both aggregate supply and aggregate demand to the right. B. The Phillips curve to the right. C. Both the Phillips curve and aggregate demand to the left. D. Aggregate supply to the right and aggregate demand to the left.