As compared to a purely competitive labor market, in a nonunionized monopsonistic labor market, wages:
A. and employment will both be lower.
B. will be higher, but employment will be lower.
C. will be lower, but employment will be higher.
D. and employment will both be higher.
Answer: A
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Economic advisers who fear that the economy is growing too rapidly would recommend that the government decrease spending and/or increase taxes
Indicate whether the statement is true or false
Why is oligopoly likely to be present in industries that see significant positive network effects?
What will be an ideal response?
Suppose that the value of the short-run absolute elasticity of demand for a good is 0.4. Then, we know the long-run absolute price elasticity of demand will be
A) 0. B) greater than 0.4. C) elastic. D) less than 0.4.
Answer the following statements true (T) or false (F)
1) The M2 money supply is larger than the M1 money supply. 2) The M2 money supply may be larger or smaller than the M1 money supply depending on the size of small-denominated time deposit balances and money market mutual fund balances held by individuals. 3) The M2 money supply may be larger or smaller than the M1 money supply depending on the size of small-denominated time deposit balances and money market mutual fund balances held by individuals. 4) Currency and coins held by banks are part of the M1 definition of money supply. 5) Gold backs the U.S. money supply.