A minimum wage set at the competitive market wage level affects the monopsonist by
A) altering its marginal expenditure curve and raising its employment level.
B) reducing its output.
C) altering the market supply curve.
D) altering its marginal expenditure curve and lowering its employment level.
A
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According to economists who explain the Phillips curve, a decline in the unemployment rate causes higher rates of inflation because
a. workers are concerned about protecting their jobs and so they accept smaller wage increases b. during periods of GDP growth, firms find it easier to pay higher wage rates and charge higher prices without worrying about losing markets c. firms decrease production and compete less aggressively for workers during periods of inflation d. workers feel less secure about their jobs and demand higher pay raises e. the Laffer curve comes into effect
The demand for the Franconian franc in the foreign exchange market equals 14,000 - 3,000e and the supply of francs in the foreign exchange market equals 2,000 + 2,000e, where e is the nominal exchange rate expressed in U.S. dollars per franc. If the franc is fixed at 2 U.S. dollars per franc, then to maintain this fixed rate Franconia's international reserves must:
A. decrease by 4,000 dollars per period. B. decrease by 2,000 dollars per period. C. increase by 4,000 dollars per period. D. increase by 2,000 dollars per period.