Consider a Monopsonistic Labour Market

question 93

Multiple Choice

Consider a monopsonistic labour market.Ten units of labour will be supplied if the wage rate is $12,and 11 units of labour will be supplied if the wage rate is $14.The marginal cost of the eleventh worker is

• A)$2.
• B)$12.
• C)between $12 and $14.
• D)$14.
• E)more than $14.

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Definitions:

Allostasis

“Balance through adaptation.” In this model of stress processes, the central nervous system (CNS) controls multiple interacting regulatory processes so that the best balance for each specific challenge is found, rather than returning to a fixed set point.

General Adaptation Syndrome

A model that describes the body's short-term and long-term reactions to stress, developed by Hans Selye.

Set-Point Model

A theory in psychology that suggests individuals have a pre-set level of happiness or well-being, which is largely stable over time despite changes in circumstances.

Homeostasis

The regulatory process organisms use to maintain stable internal conditions despite external changes.