Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Many employers competing for workers
B
A single employer dominating the job market
C
Workers setting their own wages
D
Equal bargaining power between employers and employees
Understanding the Answer
Let's break down why this is correct
Answer
A monopsony in the labor market is a situation where there is only one major employer for a specific type of worker in a particular area. This means that this employer has significant power over wages and working conditions because workers don’t have many other job options. For example, if a small town has only one factory that hires factory workers, that factory can set lower wages since workers have few alternatives for employment. This can lead to lower pay and possibly poorer working conditions since the employer does not need to compete for workers. Overall, a monopsony affects how much workers earn and the choices they have in their careers.
Detailed Explanation
A monopsony happens when there is only one big employer in a job market. Other options are incorrect because This option suggests many employers are fighting for workers; This option implies that workers can decide how much they earn.
Key Concepts
monopsony
Topic
Monopsony in Labor Markets
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.