Author Question: The marginal factor cost for a monopsonist is: a. equal to the market wage rate. b. above the ... (Read 29 times)

ec501234 · **on:** Jun 30, 2018

The marginal factor cost for a monopsonist is:
a. equal to the market wage rate.
b. above the market wage rate.
c. below the market wage rate.
d. affected by the fact that workers are less willing to work than under conditions of perfect competition.
e. lower than the marginal revenue product of labor in equilibrium.

Question 2

If policy makers estimate the natural rate of unemployment incorrectly, _____.
a. their policies will cause deflation in the long run
b. their policies will cause even more unemployment in the long run
c. the economy will stay below its potential GDP in the long run
d. the economy will tend toward the level of unemployment the policy makers believe is correct
e. policies that appear to be successful in the short run will lead to further economic problems