For a monopsony, the marginal cost of labor curve lies above the labor supply curve because
A) to hire one more unit of labor requires that the wage be raised for all units of labor.
B) to hire one more unit of labor requires that the wage be raised for just the last unit of labor hired.
C) to hire one more unit of labor, the firm uses its monopsony power to not raise the wage it pays.
D) to hire one more unit of labor requires that the firm offer a lower wage.
A
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Answer the following statement true (T) or false (F)
What would be the effect on U.S. interest rates if the Chinese and Japanese governments sold all their U.S. government securities?
A. Interest rates would rise. B. Interest rates would fall. C. The selling of Chinese and Japanese U.S. government securities would have very little effect on U.S. interest rates.
As the economy expands, the collection of personal income tax revenues automatically rises. This relationship best describes how the progressive income tax system:
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From 1979-2007, the share of market income for the bottom 99 percent of U.S. households decreased.
Answer the following statement true (T) or false (F)