An individual firm hiring labor in a competitive labor market faces a(n)
a. horizontal supply curve of labor
b. backward-bending supply curve of labor
c. downward-sloping supply curve of labor
d. upward-sloping supply curve of labor
e. vertical supply curve of labor
A
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Which of the following statements is true?
A) There will be no change in unemployment if there is a leftward shift in the labor demand curve and there is wage rigidity, everything else remaining unchanged. B) Unemployment will be higher if there is a leftward shift in the labor demand curve and there is no wage rigidity, everything else remaining unchanged. C) Unemployment will be higher if there is a leftward shift in the labor demand curve and there is downward wage rigidity in the labor market, everything else remaining unchanged. D) There will be an increase in unemployment if there is a leftward shift in the labor demand curve and there is no wage rigidity, everything else remaining unchanged.
The difference between the earnings of construction workers who work on bridges and skyscrapers and those who work on highways is most likely due to
a. differences in education requirements. b. differences in unionization rates. c. a compensating differential. d. apprenticeship requirements.
Isoquants are normally drawn with a convex shape because:
A. inputs are not perfectly substitutable. B. inputs are perfectly complementary. C. inputs are not perfectly complementary. D. inputs are perfectly substitutable.
When the Federal Reserve System was first established, its founders intended the Fed to
A. assist the Treasury in collecting taxes. B. be primarily responsible for government regulations. C. pursue an active monetary policy to stabilize the economy. D. provide protection against financial panics by acting as the lender of last resort.