If the supply of labor to a firm is perfectly elastic at the going wage rate established by the forces of supply and demand then
A. the wage rate has been decreasing.
B. the firm can only hire additional units of labor by driving the wage rate up.
C. full employment exists in the labor market.
D. the firm is price taker.
Answer: D
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In 2012, which of the following countries had negative net export spending in GDP?
A) Germany B) Hong Kong C) the United States D) China
Interest rates in the economy have risen. How will this affect aggregate demand and equilibrium in the short run?
A) Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise. B) Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall. C) Aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of GDP will fall. D) Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise.
The market equilibrium for a public good occurs at the intersection of the market demand and market supply curves
a. True b. False Indicate whether the statement is true or false
Keynesians believe that Select one
a. aggregate demand changes tend to induce aggregate supply changes, offsetting any effect from changes in government expenditures. b. money wage rate adjustments will quickly eliminate unemployment. c. the economy will normally operate at full employment. d. change in business confidence can affect the amount of investment in the economy.