Answer the following statements true (T) or false (F)
1. A monopsonist in equilibrium will hire labor at a level where MRP = MRC > W.
2. An example of a monopsonist is a labor union whose members include all the workers in a particular industry.
3. In the demand-enhancing union model, a union tries to increase the wage rate through such actions that promoting the industry's product, or raising labor productivity.
4. Professions that require its practitioners to pass a licensure exam, like accountants and doctors, exemplify the exclusive union model of how a labor union raises wage rates.
1. TRUE
2. FALSE
3. TRUE
4. TRUE
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Opportunity cost means the
A) accounting cost minus the marginal cost. B) highest-valued alternative forgone. C) accounting cost minus the marginal benefit. D) monetary costs of an activity.
The inflation associated with the oil price shocks in the 1970s after OPEC restricted the supply of oil is an example of
A) cost-push inflation due to a supply shock. B) cost-push inflation due to a demand shock. C) demand-pull inflation due to a demand shock. D) demand-pull inflation due to a supply shock.