The demand for labor is considered a derived demand since it depends on
A) the supply of labor.
B) the market for capital.
C) the consumer demand for the output produced.
D) competitive markets.
C
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Which of the following is the best definition of openness?
A. The average of imports expressed as a share of GDP. B. The average of goods traded in markets expressed as a share of GDP. C. The average of imports and exports expressed as a share of GDP. D. The average trade balance expressed as a share of GDP. E. The average of exports expressed as a share of GDP.
Suppose milk and cereal are compliments and the demand for milk is Qdm = 40 - 6Pm - 2Pc, where Qdm stands for millions of gallons of milk demanded, Pm stands for the price of milk and Pc stands for the price of cereal. The supply of milk is Qsm = 6Pm - 8, where Qsm stands for millions of gallons of milk supplied. The demand and supply of cereal are Qdc = 90 - 5Pc - Pm and Qsc = 5Pc - 10, respectively, where Qdc stands for millions of boxes of cereal demanded and Qsc stands for millions of boxes of cereal supplied. Which of the following gives the market-clearing curve for cereal?
A. Pc = 100 - (Pm/10) B. Pc = 8 - (Pm/10) C. Pc = 10 - (Pm/10) D. Pc = 10 + (Pm/10)
The planning horizon refers to the short run, when the firm must plan how much of a variable input to apply to a fixed input
a. True b. False Indicate whether the statement is true or false
The invisible hand principle indicates that competitive markets can help promote the efficient use of resources
a. only if buyers and sellers really care, personally, about economic efficiency. b. even when each market participant cares only about their own self interest rather than about the overall efficiency of resource use. c. even if business firms fail to produce goods efficiently. d. if, and only if, businesses recognize their social obligation to keep costs low and use resources wisely.