In a market characterized by a monopsony, the government can intervene to correct inefficiencies by implementing a __________ to encourage the hiring of more workers, thereby reducing the deadweight loss associated with labor market distortions.

In a monopsony, there is only one buyer in the market, which means that this buyer has significant control over prices and wages. This can lead to fewer workers being hired than what would be ideal for the economy, creating a situation where some potential workers are not employed. To help fix this problem, the government can implement a subsidy, which is a financial support given to employers for each worker they hire. For example, if a company receives a subsidy for hiring new employees, it might be encouraged to hire more workers than it would have without the support, leading to more jobs and less waste in the economy. This intervention helps reduce the deadweight loss, which is the economic loss that occurs when the market is not operating efficiently.