If the supply of labor to a monopsonist is everywhere unit elastic, and the marginal expenditure equals $1, then the wage will equal
A) $0.50.
B) $0.75.
C) $1.00.
D) $2.00.
A
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In the above figure, the economy is initially at point B. Then the price level falls by 10. The wealth effect will help
A) move the economy to point A. B) move the economy to point C. C) move the economy to point D. D) keep the economy to point B.
One example of human capital is the amount of savings that you have
Indicate whether the statement is true or false
If you were told that the exchange rate between the U.S. dollar and the Canadian dollar was 1.2, that would mean that Canadians would have to spend ____ to buy a $12 watch in New York City.
A. 18 Canadian dollars B. 10 U.S. dollars C. 12 U.S. dollars D. 14.4 U.S. dollars
Answer the following statement(s) true (T) or false (F)
1. The price of a good accurately reflects the total value it creates for society. 2. The Invisible Hand Theorem shows that competitive markets create the maximum possible social gain, even when all interactions among the markets are taken into account. 3. In an Edgeworth box, all Pareto-optimal allocations lie within the region of mutual advantage. 4. In an Edgeworth box economy, a competitive equilibrium must lie on the contract curve within the region of mutual advantage. 5. The gains from international trade are greatest when a country's autarkic relative prices are similar to the world relative prices.