The wage rate and MLC differ for a monopsonist because
a. the monopsonist is forced to pay a wage rate greater than the worker's MLC
b. the monopsonist must accept the labor market's wage rate
c. workers are not as efficient when employed by a monopsonist
d. any wage rate increase applies to all workers, not just to the last hired
e. a wage rate decrease forces workers to work longer hours
D
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The purchase of less than 10 percent of the shares of ownership in a company in another country is known as
A) portfolio investment. B) an ineffective method for encouraging economic growth. C) foreign direct investment. D) a hostile takeover.
The multiplier effect refers to the series of
A) autonomous increases in consumption spending that result from an initial increase in induced expenditures. B) induced increases in consumption spending that result from an initial increase in autonomous expenditures. C) autonomous increases in investment spending that result from an initial increase in induced expenditures. D) induced increases in investment spending that result from an initial increase in autonomous expenditures.