1.For a non-discriminating monopsonist, the equilibrium employment level is set at the intersection of

a.MRP and W

b.VMP and MC of labour

c.VMP and ongoing market wage

d.VMP and labour supply

2.Consider this statement; "Payroll taxes are job killers because they reduce labour demand". Which condition shows that this statement is not correct?

a.Elastic labour demand

b.These taxes are quasi-fixed costs

c.Perfectly electic labour supply

d.Perfectly inelastic labour supply

3.How can we explain the positive effect of a wage increase on employment?

a.Competitive labour market structure

b.Monopsony or efficiency wage theory or monopoly markets

c.This positive effect does not exist

d.We were wrong by thinking that labour demand is downward sloping