Black Markets Are Associated with

question 172

Multiple Choice

Black markets are associated with

• A) price floors and the resulting product surpluses.
• B) price floors and the resulting product shortages.
• C) ceiling prices and the resulting product shortages.
• D) ceiling prices and the resulting product surpluses.

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Definitions:

Marginal Product

The additional output that results from the use of one more unit of a factor of production, keeping all other factors constant.

Monopsonist

A market condition where there is only one buyer for many sellers, giving the buyer significant power over prices and terms.

Nonunion Labor Force

Employees who are not members of a labor union and do not have negotiated contracts concerning their wages, benefits, and working conditions.

Monopsonist

A market condition in which a single buyer substantially controls the market as the major purchaser of goods and services.