The labor demand curve of a firm
A. is the same as its marginal product curve.
B. reflects a direct relationship between the number of workers hired and the money wage rate.
C. is perfectly elastic if the firm is selling its product in a purely competitive market.
D. will shift to the left if the price of the product the labor is producing falls.
Answer: D
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What would happen in a free market system when production of a good generates negative externalities?
A) There is a shortage of the good. B) There is a surplus of the good. C) The equilibrium quantity of the good is less than the efficient amount. D) The equilibrium quantity of the good is more than the efficient amount.
The adaptive expectations hypothesis implies that people:
a. adjust their expectations quickly to policy changes. b. expect the next period to be pretty much like the recent past. c. will always be correct in their forecast for the next period. d. change their expectations about the future if policy changes.
Explain how a decrease in the demand for capital goods in the U.S. can lead to a change in the U.S. exchange rate
One of the ideas that found a permanent place in macroeconomics after Milton Friedman's presidential address to the American Economic Association in 1967 was that
A) there is not only a temporary tradeoff between inflation and unemployment, but a permanent tradeoff as well. B) the tradeoff between unemployment and inflation exists only in the long run, but not in the short run. C) people's expectations about economic events affect economic outcomes. D) a and b