Which of the following would not be true of a competitive labor market?
A. Wages would be determined by supply and demand.
B. The demand curve for labor would be derived like the demand curve for any other input.
C. The demand curve for labor would be the downward-sloping portion of the MRP curve.
D. Labor supply would be determined by the marginal revenue product curve.
Answer: D
You might also like to view...
List and compare the four components of the expenditure approach to calculating GDP
What will be an ideal response?
After Suzie, owner of Suzie's Sweet Shop, hires her 8th worker the average product of labor declines. Which of the following statements must be true?
A) The average product of labor is negative. B) The marginal product of the 8th worker is negative. C) The marginal product of the 8th worker is less than the average product of labor before the 8th worker was hired. D) Suzie's profits would be greater if she did not hire the 8th worker.
When a tax is imposed on sellers, producer surplus decreases but consumer surplus increases
a. True b. False Indicate whether the statement is true or false
Inflation is problematic if
a. it is less than the percentage increase in nominal income. b. it is less than the nominal return on saving. c. it equals the growth rate of real GDP in the long run. d. it distorts relative prices, causing a misallocation of resources.