Q1. Consider a monopsony employer in a labour market. Elucidate Explain how a union in this labour market might simultaneously increase the wage rate, employment and led to allocative efficiency.
Elucidate why an individual labour provides curve is backward bending and why the market labour provide curve is upward sloping. In your answer, Elucidate the relationship between an individual labours provide curve and the market labour provide curve.
Q2. Which of the following movements would be consistent with the government budget going from deficit to surplus and the simultaneous enactment of an investment tax credit?