In a perfectly competitive labor market, the firm ________ the price of its product and ________ the wage it pays its workers.
A. takes from the market; takes from the market
B. can freely set; takes from the market
C. takes from the market; can freely set
D. can freely set; can freely set
Answer: A
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If cable TV subscriptions and movie rentals are substitutes for each other, what is the effect in each of these markets of an increase in wages for people who work for the cable TV company? Use your analysis to determine the sign of the cross
elasticity of demand between the quantity of movie rentals and the price of cable TV.
Fiscal restraint is defined as
A. Tax cuts or spending hikes intended to reduce aggregate demand. B. Tax cuts or spending hikes intended to increase aggregate demand. C. Tax hikes or spending cuts intended to reduce aggregate demand. D. Tax hikes or spending cuts intended to increase aggregate demand.
As populations age, public spending tends to increase
Indicate whether the statement is true or false
What factors lead to changes in the quantity demanded of money and what factors lead to changes in the demand for money?
What will be an ideal response?