A monopsonist that wants to hire more labor must pay more for the new labor than it is currently paying and increase the wage rate of all existing employees because
A. of labor unions.
B. the supply of labor is upward sloping.
C. of competition in the labor market.
D. the demand curve for labor is inelastic.
Answer: B
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A game of incomplete information is distinct from one of complete information in that players:
a. do not observe each others' actions. b. do not know each others' payoff functions. c. do not know the timing of moves. d. use mixed strategies.
Under perfect competition, the per unit revenue of a firm is equal to its marginal revenue
a. True b. False Indicate whether the statement is true or false
The 2002-2008 OPEC price increases caused by conflict in the Middle East caused the aggregate
a. demand curve to shift outward. b. demand curve to shift inward. c. supply curve to shift outward. d. supply curve to shift inward.
Rather than seeking to balance the budget, Keynesian economists argue that the government's tax and spending policies should be determined by the
a. demand for government-provided public goods. b. level of aggregate demand required to achieve full employment of resources. c. size and quality of the labor force. d. need to expand or contract the supply of money.