Refer to the below graph. Comparing a monopsony against a purely competitive labor market, the difference in the equilibrium wage rate will be:







A. W0 - W1



B. W1 - W2



C. W2 - W3



D. W1 - W3


C. W2 - W3

Economics

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In a study conducted by Marianne Bertrand and Sendhil Mullianthan, identical resumes were sent in response to help wanted ads in newspapers, with half of the resumes assigned an African-American-sounding name and half assigned a white-sounding name

The study found that A) employers were 50 percent more likely to interview workers with African-American-sounding names. B) employers were equally likely to interview workers with white-sounding names and with African-American-sounding names. C) employers were 50 percent more likely to interview workers with white-sounding names. D) no employers chose to interview workers with African-American-sounding names.

Economics

An appropriate Keynesian response to an inflationary gap is to: a. decrease net taxes

b. decrease government spending. c. decrease interest rates. d. decrease the cash reserve ratio.

Economics

In many elections the Republican and Democratic candidates share remarkably similar views-so similar that independent candidates (who rarely win the elections) often enter elections to represent opposing views. How can the similarity between the Republicans and Democrats be explained?

What will be an ideal response?

Economics

In the Keynesian model, changes in the money supply cause changes in

A) saving. B) investment. C) government spending. D) aggregate supply.

Economics