A monopsonistic employer's marginal resource (labor) cost curve:
A. is always more elastic than the labor supply curve.
B. coincides with the labor supply curve.
C. lies below the labor supply curve because the higher wage paid to an additional worker
must also be paid to all other employed workers.
D. lies above the labor supply curve because the higher wage paid to an additional worker
must also be paid to all other employed workers.
Answer: D
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Refer to Table 7.1. Output is increasing at
A) a diminishing rate. B) an increasing rate. C) a constant rate. D) a negative rate.
Countries with the
A) biggest deflations and output contractions are countries which were never on the gold standard until 1936. B) biggest inflations and output contractions are countries which were on the gold standard until 1936. C) lowest deflations and output contractions are countries which were on the gold standard until 1936. D) biggest deflations and output increases are countries which were on the gold standard until 1936. E) biggest deflations and output contractions are countries which stayed on the gold standard until 1936.