The Critical Feature of a Monopsonistic Labor Market Is That

question 225

Multiple Choice

The critical feature of a monopsonistic labor market is that the employer

• A) has a perfectly elastic demand curve for labor.
• B) can hire any number of workers it chooses at the going wage rate.
• C) faces an upsloping labor supply curve.
• D) faces a perfectly inelastic labor supply curve.

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Definitions:

Medium of Exchange

An instrument or system used to facilitate the sale, purchase, or trade of goods between parties, typically money in modern economies.

Store of Value

An asset that can be saved, retrieved, and exchanged in the future without depreciating significantly.

Fiat Money

Paper money that is not backed by or convertible into any good; it is money because the government says it is money.

Medium of Exchange

A facilitating device or arrangement employed to assist in the transactions of buying, selling, or trading items between entities.