If the supply of labor to a firm is perfectly elastic at the going wage rate established by the forces of supply and demand then
A) the firm is price taker.
B) the firm can only hire additional units of labor by driving the wage rate up.
C) the wage rate has been decreasing.
D) full employment exists in the labor market.
Answer: A
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Suppose the price of cheese rises. In the market for pizza, one would expect that
A) the supply of pizza would increase, and the price would fall. B) the demand for pizza would increase, and the price would increase. C) the demand for pizza would decrease, and price would fall. D) the supply of pizza would decrease, and price would rise.
The features of the M-Form of firm organization are
a. divisions can respond more easily to change b. it is difficult to maintain customer relationships c. coordination across divisions is simple and does not take much management time d. evaluating employees is easier because managers typically are similarly trained
If consumers reduce the purchase of goods whose relative prices rise (substitution bias), the consumer price index (CPI) will tend to have an upward bias over time (overstates inflation)
a. True b. False Indicate whether the statement is true or false
Compared to people in other nations, people in the United States pay
a. much higher taxes. b. somewhat higher taxes, on average. c. about the same amount taxes. d. lower taxes.