In a perfectly competitive industry, an individual firm faces
A) a perfectly inelastic labor supply curve.
B) a perfectly vertical labor supply curve.
C) a perfectly elastic labor supply curve.
D) none of the above.
Answer: C
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One of the most obvious clues to the relative scarcity of a product is
A) the limited selection of colors. B) the quality of the product. C) the variations in available sizes. D) its current market price.
Higher deductibles for employer-provided health care will tend to shift the ________ curve for medical services to the ________
A) supply; left B) supply; right C) demand; left D) demand; right
In comparing an oligopolistic firm to a perfectly competitive firm it is generally assumed that the price charged by the competitive firm will be higher than the price charged by the oligopolistic firm
Indicate whether the statement is true or false
Unemployment compensation programs tend to increase the unemployment rate because: a. they increase the opportunity cost of leisure
b. they provide benefits only to unemployed people under the age of 18. c. they legally fix the minimum wage that has to be paid to labor. d. they allow unemployed persons to become more selective in what job offer they accept. e. they do not provide benefits to labor engaged in the manufacturing sectors of the economy.