In a monopsonistic market
A) employment is lower but wages are higher than in a comparable competitive market.
B) employment is higher but wages are lower than in a comparable competitive market.
C) both employment and wages are higher than in a comparable competitive market.
D) both employment and wages are lower than in a comparable competitive market.
Answer: D
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
One well-established full-service stock brokerage charges $35 commissions per trade. A new online brokerage charges $7.95 per trade. Yet, many people still elect to use the traditional, full service broker. Why?
A) They're fools. B) They must not be aware of online brokers. C) They might perceive the low commission to be a sign of low reliability. D) They are failing to economize.
Where there are internal economies of scale, the scale of production possible in a country is constrained by
A) the size of the domestic plus the foreign market. B) the size of the country. C) the size of the trading partner's country. D) the size of the domestic market. E) the size of the foreign market.
How was South Korea able to become one of the East Asian Economic Miracles?
What will be an ideal response?