How does a monopsonist decide how many workers to hire and what wage rate to pay?
It maximizes profit by hiring workers as long as MRP exceeds MLC, stopping at the quantity where
MRP = MLC. Then it selects the wage rate necessary to induce exactly that quantity to work. Graphically,
this is the wage rate that corresponds to its desired quantity on the labor supply curve.
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
A higher real rate of interest ________ the reward for saving and ________ the amount people need to save to reach a given target.
A. decreases; decreases B. increases; increases C. increases; decreases D. decreases; increases
Output supply curves always slope up in the one-input model.
Answer the following statement true (T) or false (F)
A number of economists have estimated the impact of unionization on workers' wages. Which of the following is one conclusion reached by these studies?
A) Holding constant the impact of other factors that affect wages, being in a union has no impact on a worker's wages. B) Being in a union increases a worker's wages by about 10 percent, holding constant other factors that influence wages. C) Union workers earn less than they would if they were not unionized. This is because of the impact of workers' strikes, during which union members do not receive wages. D) The share of national income received by workers has increased significantly over time; unions have been responsible for about one-half of the increase in workers' share of national income from the end of World War II to 2000.