In the DMP model
A) the market wage is equal to the marginal product of labor.
B) the market wage is equal to the marginal rate of substitution of leisure for consumption.
C) the wage is equal to the marginal rate of transformation.
D) the wage is determined by bargaining between the firm and the worker.
D
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Compared to the United States, over the last three decades unemployment in Western Europe has been ________ and the rate of job creation has been ________.
A. higher; slower B. higher; faster C. lower; slower D. lower; faster
The aggregate demand curve tends to be
a. vertical. b. horizontal. c. upward sloping. d. downward sloping.
Recall the Application about the productivity of large infrastructure investments to answer the following question(s). According to the Application, what is the massive investment project did China recently embark on?
A. bullet trains B. irrigation C. stem cell research D. reforestation
Firms that produce 90 percent of all smart TVs have shut down their facilities for maintenance. In the smart TV market this will lead to
A. an increase in price and a decrease in quantity. B. an increase in price and an increase in quantity. C. a decrease in price and a decrease in quantity. D. a decrease in price and an increase in quantity.