Wage and MFC differ for a monopsonist because:
a. the monopsonist is forced to pay a wage greater than the worker's MFC.
b. the monopsonist must accept the market wage rate.
c. workers are not as efficient when employed by a monopsonist.
d. any wage increase applies to all workers, not just to the next hired.
e. wage rate decreases force workers to work longer hours.
d
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Which of the following is NOT a reason why people are motivated to hold money?
A) precautionary demand B) liability demand C) asset demand D) transactions demand
The school of economic thought which argues that through tax reductions, and deregulation, government creates the proper incentives for the private sector to increase aggregate supply is known as the:
a. rational expectations school. b. neo-Keynesian school. c. supply-side school. d. new classical school. e. classical school.