For a monopsonistic hirer of labor the gap between labor's marginal value product and its wage rate will be greater
a. the more elastic the supply curve for labor.
b. the more inelastic the supply curve for labor.
c. the more elastic the firm's demand for labor.
d. the more inelastic the firm's demand for labor.
b
You might also like to view...
The principal-agent problem in corporations arises from:
A. the view that workers are agents who are not considered to be the principal asset of the corporations for which they work. B. the fact that the principal objective of most corporations is to make profits and not to contribute to charity. C. a perspective that corporations are agents that represent the principal source of power for government and the national economy. D. a conflict of interest between corporate executives who manage the firm and stockholders who own the firm.
Oligopoly arises with scale economies that are not large enough to cause a natural monopoly.
Answer the following statement true (T) or false (F)
If the current macroequilibrium is below an output level of that associated with full employment, how would the current equilibrium be impacted by a rightward shift of the aggregate supply curve, ceteris paribus?
A. A higher price level and a lower level of output. B. A lower price level and a higher level of output. C. A recession or depression. D. A higher price level and a higher level of output.
The existence of a lender of last resort creates moral hazard for bank managers because:
A. they have an incentive to take too much risk in their operations. B. they are less likely to apply for a direct loan from the central bank. C. officials are likely to undervalue the bank's portfolio of assets. D. banks seek loans from the central bank only after exploring other options.