In Comparison to an Employer in a Competitive Labor Market

question 259

Multiple Choice

In comparison to an employer in a competitive labor market, a monopsony employer hires ________ workers and produces ________ output.

• A) fewer; less
• B) fewer; more
• C) more; less
• D) more; more

---

Definitions:

Demand-Side

Economic policies or concepts focused on increasing demand for goods and services as a way to stimulate economic growth.

Market Failures

Situations where the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Shortage

The amount by which the quantity demanded of a product exceeds the quantity supplied at a particular (below-equilibrium) price.

Market

Any institution or mechanism that brings together buyers (demanders) and sellers (suppliers) of a particular good or service.