1. Consider the report distributed by the White House Council of Economic Advisers in October 2016 entitled Labor Market Monopsony: Trends, Consequences, and Policy Responses. This paper can be found on the course BbLearn page.

1. (4 points) Focus on the section entitled Sources of Monopsony Power in the Labor Market (pages 3-7). Summarize the factors the report argues have restricted worker wages. Based on the information provided, which of the reasons discussed do you think has had the strongest impact on restricting wage growth in the U.S. labor market?

2. (4 points) Consider the subsection on labor market dynamism (pages 10-12). Discuss the evidence presented in this set of figures regarding trends in mobility among workers. What has been happening to mobility? Do you consider these trends in mobility to be a good sign or a bad sign overall for the state of the economy? Discuss your reasoning, and note that your opinion of the trends can vary by the type of mobility discussed.

3. (4 points) Based on the evidence presented in this document, how much do you think government policy should be used to counteract the impact of monopsony power on wages? Explain your reasoning. Assuming we were going to use policy, which of the many policy responses mentioned do you think would be most important to adopt? Which would be the least important to adopt? Explain your reasoning.