Lois sells ten sweaters she had knitted to a retail store. The gross domestic product (GDP) of her country _____.
a. will increase
b. will decrease
c. will remain unaffected
d. will increase only if the sweaters are as good as the sweaters sold by other retailers
e. will increase if the price of each sweater is less than the cost of inputs required
Question 2
As compared to a firm that competes for labor, a monopsony will:
a. hire fewer workers and pay lower wages.
b. hire fewer workers by pay higher wages.
c. pay lower wages but hire more workers.
d. pay higher wages and hire more workers.
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