If there is a monopsony operating in the labor market illustrated in the figure above and the federal government decides to institute a minimum wage of $8 an hour then the wage paid will ________ and the quantity of labor hired will ________
A) increase; decrease
B) increase; increase
C) decrease; increase
D) decrease; decrease
B
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A ________ is a complete plan describing how a player will act
A) strategy B) payoff C) hypothesis D) policy
A decrease in the expected future price of a good will cause the current demand for the good to
a. decrease, which is a shift to the left of the demand curve. b. decrease, which is a shift to the right of the demand curve. c. increase, which is a shift to the left of the demand curve. d. increase, which is a shift to the right of the demand curve.
The ease with which an asset can be
a. traded for another asset determines whether or not that asset is a unit of account. b. transported from one place to another determines whether or not that asset could serve as fiat money. c. converted into a store of value determines the liquidity of that asset. d. converted into the economy's medium of exchange determines the liquidity of that asset.
The economy is in a recessionary gap and there is evidence that the economy is in a liquidity trap. In this situation, a Keynesian is likely to advocate the use of __________ policy
A) expansionary fiscal B) contractionary fiscal C) expansionary monetary D) contractionary monetary