A monopsonist purchaser of labor that could negotiate a different wage for each worker could
A) purchase less labor than a regular monopsonist.
B) purchase more labor than a regular monopsonist.
C) rotate the marginal expenditure curve to the left.
D) shift the marginal expenditure curve to the left.
B
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Use the aggregate expenditures model and assume the marginal propensity to consume (MPC) is 0.90 . An increase in government spending of $1 billion would result in an increase in GDP of:
a. $0. b. $0.9 billion. c. $1.0 billion. d. $9.0 billion. e. $10.0 billion.
Which of the following is a valid counterargument against using tariffs to protect high wages from cheap foreign labor?
A. The benefits of such tariff policy will go to consumers, not workers B. The benefits of such tariff policy will go to businesses, not workers C. Wage rates in a nation are largely determined by productivity, not trade tariffs D. The economy may become overheated, thus increasing inflation