According to the classical model, workers chose a level of labor that equates the
a. real wage and marginal product of labor.
b. nominal wage and marginal product of labor.
c. the marginal utility of consumption and the marginal disutility of lost leisure.
d. the marginal utility of consumption with the real wage.
C
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Explain the capture hypothesis
What will be an ideal response?
The desired level of union employment occurs where the market wage curve intersects the labor supply curve.
Answer the following statement true (T) or false (F)
If a firm in monopolistic competition lowers its price, what will happen to the quantity of products it sells?
a. The quantity of products sold will increase and sales revenue will fall. b. The quantity of products sold will decrease because this is not perfect competition. c. The quantity of products sold will increase slightly—and in some cases not at all. d. The quantity of products sold and sales revenues will increase as the firm lures customers from its competitors and attracts new customers.
Nominal GDP measures the ________ of production.
A. current dollar value B. physical volume C. base year value D. change in the volume