A characteristic of a competitive labor market is
A. an equilibrium wage and quantity supplied.
B. an overall reduction in employment due to firms having market power.
C. high levels of unemployment.
D. labor supply changing as the wage changes.
Answer: A
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Which of the following statements best describes the neoclassical argument about unemployment and inflation?
a. Neoclassical economists argue that any short-term gains in lower unemployment will eventually vanish and the result of active policy will only be inflation. b. Neoclassical economists argue that any long-term gains in lower unemployment will eventually vanish and the result of active policy will only be inflation. c. Neoclassical economists argue that any short-term gains in lower unemployment will eventually vanish and the result of active policy will only be deflation. d. Neoclassical economists argue that any long-term gains in lower unemployment will eventually vanish and the result of active policy will only be deflation.
If the government did not provide national defense, explain why you would be more likely to give money to a Girl Scout who knocks on your door to sell cookies than to give money to a volunteer collecting for the provision of national defense
When quantity supplied is greater than quantity demanded, market price is _______ the equilibrium price.
Fill in the blank(s) with the appropriate word(s).
Expansionary fiscal policy during a recession means cutting taxes, increasing government spending, or taking both actions.
Answer the following statement true (T) or false (F)