Which of the following statements is TRUE about the market demand curve for labor?
A. The market demand curve is the sum of the individual firm's demand curve.
B. The market demand curve depends upon labor productivity, the wage rate and the price of the final product.
C. The market demand curve shows the quantities of labor demanded by all firms in the industry at various marginal products.
D. The market demand curve will be perfectly inelastic since firms need labor.
Answer: B
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When one compares per-capital output growth rates among countries
A) one needs to correct the data to account for departures from purchasing power parity. B) such corrections are often not necessary. C) such corrections are sometimes necessary. D) the evidence whether such corrections are necessary are vague. E) such corrections are not necessary.
The Consumer Price Index was 247 in year 1 and 272 in year 2. The rate of inflation in year 2 was:
a. 6 percent b. 12 percent c. 8 percent d. 10 percent
The more restrictive affirmative action programs are,
A) the greater the likelihood of the economic pie shrinking. B) the lower the administrative costs of administering the program. C) the larger the wage gap tends to get. D) the greater the amount of labor market discrimination.
A price ceiling is a price
A) below which a seller cannot legally sell. B) above which a seller cannot legally sell. C) that creates a surplus of the good. D) Both answers A and C are correct.