Under monopsony, marginal factor cost
A. is less than the wage rate, although it increases as more workers are hired.
B. is greater than the going wage rate.
C. is downward sloping.
D. equals the wage rate.
Answer: B
You might also like to view...
If the marginal propensity to consume is 0.85 and there are no imports or income taxes, the expenditure multiplier is equal to
A) 1 ÷ (1 - 0.85 ) = 1 ÷ 0.15 = 1.45. B) 0.85 × the change in autonomous expenditure. C) 0.85 ÷ 1 = 0.85. D) 1 ÷ 0.85 = 1.176. E) 1 - 0.85 = 0.15.
An example of a price shock is ________
A) an increase in wages as a result of higher expected inflation B) the arrival of immigrants seeking employment C) the decline in autonomous spending that results from rising unemployment D) all of the above E) none of the above
When the Fed purchases securities from a bank, it __________ reserves and ____________ the money supply
A) decreases; decreases B) increases; increases C) decreases; increases D) increases; decreases E) has no impact on; has no impact on
When a union raises the wage above the equilibrium level,
a. both the quantity of labor supplied and unemployment rise. b. both the quantity of labor supplied and unemployment fall. c. the quantity of labor supplied rises and unemployment falls. d. the quantity of labor supplied falls and unemployment rises.