The equilibrium of a competitive labor market is associated with
A. no unemployment as labor is assumed to be supplied inelastically.
B. no unemployment as everyone who wants a job at the equilibrium wage has one.
C. some unemployment as some people do not have a job at the equilibrium wage.
D. some unemployment as firms are not required to pay the minimum wage.
E. no unemployment as everyone has a job.
Answer: B
You might also like to view...
Assume that the real rate of interest is 5 percent and a lender charges a nominal interest rate of 15 percent. If a borrower expects that the rate of inflation next year will be 10 percent and the actual rate of inflation next year is 12 percent:
a. neither the borrower nor the lender benefits from inflation. b. both the borrower and the lender lose from inflation. c. the borrower benefits from inflation, while the lender loses from inflation. d. the lender benefits from inflation, while the borrower loses from inflation.
A profit-maximizing monopolist will produce the level of output at which
a. average revenue is equal to average total cost. b. average revenue is equal to marginal cost. c. marginal revenue is equal to marginal cost. d. total revenue is equal to opportunity cost.
Which of the following is a fundamental topic addressed by microeconomics?
A) whether to extend unemployment insurance B) determining how many new iPhones the Apple company should produce C) the level of inflation in the country D) the impact of interest rates on savings in the economy
The infant industry argument for protection makes sense if the infant industry is
A. able to compete against foreign firms now, but not in the future. B. not able to compete against foreign firms now, but will be able to in the future. C. not be able to compete now or in the future. D. able to compete now and in the future.