In the basic competitive model of labor markets, we see that
A. individual firms and workers have no control over the wage rate paid and received.
B. there are only long-term contracts.
C. individual firms and workers can exert a lot of influence over the wage rate.
D. jobs are not identical to each other.
Answer: A
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In the above figure, the long-run equilibrium real GDP is
A. $10 trillion. B. $11 trillion. C. $12 trillion D. not displayed.
For a restaurant, all the following are examples of variable costs, except
a. Labor costs b. Cost of raw materials c. Rents on dining space d. None- all of them are variable costs
In which scenario can a perfectly competitive firm continue to produce in the short term, even though it would mean economic losses (where P = price, AVC = average variable costs, and ATC = average total cost)?
a. P < AVC but P > ATC b. P = AVC + ATC c. P > ATC – AVC d. P > AVC but P < ATC
According to economic theory, what is the optimal percentage of GDP to be spent on medical care?
a. Whatever amount we are currently spending b. 10 percent c. 8 percent d. 12 percent e. No widely accepted way to determine the optimal percentage