A firm produces staples in a perfectly competitive market and hires workers in a perfectly competitive labor market. Which of the following is true?
a. The supply curve of staples is horizontal.
b. The supply curve of workers is horizontal.
c. The firm's demand curve for labor is horizontal.
d. The marginal revenue product of labor curve is horizontal.
e. The marginal product of labor curve is horizontal.
B
You might also like to view...
Every country in the world has an independent central bank
Indicate whether the statement is true or false
In the above figure, at the point where AD equals SAS
A) real GDP exceeds potential GDP. B) potential GDP exceeds real GDP. C) the economy is in a recession. D) the unemployment rate is zero.
The international unit of accounting used by the International Monetary Fund (IMF) is called
A. special drawing rights. B. the IMF dollar. C. the quota subscription. D. the Eurodollar.
The United States is experiencing a recession and Congress decides to adopt an expansionary fiscal policy to stimulate the economy. In this case, the crowding-out effect suggests that investment spending would:
A. Increase, thus partially offsetting the fiscal policy B. Increase, thus partially reinforcing the fiscal policy C. Decrease, thus partially offsetting the fiscal policy D. Decrease, thus partially reinforcing the fiscal policy