If a firm is hiring a certain type of labor under purely competitive conditions:
A. its labor demand curve will be perfectly elastic at the market-determined wage rate.
B. the labor supply curve will lie above the marginal labor cost curve.
C. the labor supply and marginal labor (resource) cost curves will coincide and be upsloping.
D. the labor supply and marginal labor (resource) cost curves will coincide and be perfectly
elastic.
Answer: D
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When demand is inelastic,
A) price and revenue move in opposite directions. B) price and revenue are not related. C) price and quantity demanded move in opposite directions. D) price and revenue move in the same direction.
A measure of GDP in which quantities produced are valued at current-year prices is called:
A. real GDP. B. nominal GDP. C. physical GDP. D. base GDP.
According to the "wealth effect," when the ________ falls, the ________ rises
A) inflation rate; nominal value of household assets B) unemployment rate; average level of household income C) price level; the nominal value of household wealth D) price level; the real value of household wealth
The use of macroeconomic policies to smooth or moderate the business cycle is known as
A. aggregate supply management. B. discretionary policy. C. automatic stabilization. D. aggregate demand management.