When Harlan County, Kentucky, has a monopsony coal mining firm,
a. d and e.
b. workers will work for the firm that pays the higher wage.
c. coal buyers will continue to buy coal from other counties.
d. coal miners will only have one employer.
e. wages will be determined only by the demand for labor.
Question 2
The statement Gross domestic product (GDP) values all output equally means that:
a. household production is treated the same as production by firms.
b. depreciation of manufactured capital is treated the same as depletion of natural resources.
c. the purchase of pollution control equipment is valued the same as pollution itself.
d. leisure time is valued the same as time spent working a job.
e. the market price of output is the measure of that output's value.
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