In the DMP model,
A) Firms maximize profits.
B) Firms determine how much effort they should put into filling job vacancies.
C) Firms decide whether or not to enter the labor market by posting vacancies.
D) Firms decide whether or not to retain or fire workers.
C
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An oligopolist's effective demand curve will be kinked if the firm
a. is acting as a price leader in the industry. b. expects other firms to match price cuts but not price increases. c. expects other firms to match all price changes. d. fears new entry into the industry.
What is the effect of immigration in the long run?
a. Output will increase. b. Factor prices will increase. c. There will be no change in factor prices. d. There will be an increase in output but no change in factor prices.
In January, in an attempt to commit to getting fit, I signed a year-long, binding contract at a local gym, agreeing to pay $40 per month in membership fees. I also spent $300 on extremely stylish gym clothes. This morning, I was trying to decide whether or not to actually go to the gym. Which of the following was relevant to this decision?
a. The fact that I also had to write a 103 midterm exam today. b. The $40 that I paid the gym this month. c. The $300 I spent on gym clothes. d. All of the above were relevant.
For this question, assume that the economy is initially operating at the natural level of output. An increase in unemployment benefits will cause
A) an increase in the real wage in the medium run. B) a reduction in the real wage in the medium run. C) no change in the real wage in the medium run. D) ambiguous effects on the real wage in the medium run.