Suppose That Monopsony Behavior Results from the Increased Monitoring Costs

question 45

Multiple Choice

Suppose that monopsony behavior results from the increased monitoring costs at large firms.A higher minimum wage would ________ the marginal expense of hiring labor but only if the workers are ________ afraid of losing their jobs and thus need less supervision.

• A) rise; more
• B) raise; less
• C) lower; more
• D) lower; less

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Definitions:

Attitude

A psychological construct that embodies an individual's positive or negative evaluations, feelings, and tendencies towards an object or idea.

Optimists

Individuals who tend to maintain a positive outlook on life and anticipate positive or favorable outcomes, often exhibiting resilience in the face of adversity.

Pessimists

Individuals who tend to see the worst aspect of things or believe that the worst will happen; a tendency to expect negative outcomes.

Attitude-improving Feedback

Constructive criticism or positive reinforcement aimed at encouraging a change in behavior or attitude.