If a particular labor market were to convert from a competitive market to a monopsony, what effect would we expect on the number of workers hired? What effect would we expect on the wage paid to workers?
We would expect the number of workers hired to decrease. We would expect the wage paid to workers to decrease as well.
You might also like to view...
If a price floor of $10 a bottle is imposed on wine from California,
a. all wine from California becomes more expensive. b. all wine from California becomes cheaper. c. the price of some wines will increase. d. the price floor will have no effect.
A deadweight loss of consumer and/or producer surplus occurs when:
a. producers fail to maximize profits. b. mutually beneficial transactions cannot be completed. c. consumers do not maximize their utility. d. the price of inputs increases.
The impact of an increase in the money supply is a(n):
a. increase in the interest rate, which in turn stimulates investment and GDP. b. decrease in the interest rate, which in turn stimulates investment and GDP. c. reduction in the general level of prices, which will increase the disposable income of households. d. improvement in technology, which will stimulate both output and employment.
As national income increases, consumption spending increases as well, always by the same amount. That is, as national income increases, MPC remains constant, according to
a. Duesenberry's relative income hypothesis b. Keynes's absolute income hypothesis c. Friedman's permanent income hypothesis d. Modigliani's life-cycle hypothesis e. real asset theory