If the marginal product of labor is less than the nominal wage divided by the price of output, a firm that wishes to maximize profits will
A) hire more labor.
B) lay off workers.
C) maintain its current level of workers.
D) raise the real wage.
B
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Explain how the economy moves back to full employment from recession. Be sure to detail what happens to short-run aggregate supply, unemployment, equilibrium GDP and the price level
What will be an ideal response?
Graphically, the optimum choice of a consumer is determined at: a. the point of intersection of the lowest indifference curve and the budget constraint. b. the point of intersection of the budget line and the vertical axis
c. the point where the highest indifference curve is tangent to the budget constraint. d. the point of intersection of the budget line and the horizontal axis.
When a tax is placed on the sellers of cell phones, the size of the cell phone market
a. and the effective price received by sellers both increase. b. increases, but the effective price received by sellers decreases. c. decreases, but the effective price received by sellers increases. d. and the effective price received by sellers both decrease.
The United Farm Workers have been unsuccessful for decades in their attempts to organize California's strawberry pickers because the workers
A. Know that replacement workers are readily available. B. Don't understand English. C. Don't care about earning higher wages. D. Are members of a union shop.