A firm that hires labor in a purely competitive resource market is a:
A. "Price maker"
B. "Product taker"
C. "Money maker"
D. "Wage taker"
D. "Wage taker"
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According to the Invisible Hand Theorem, when competitive markets are used to allocate resources
a. no further gains from trade can be created. b. selfish behavior will cause socially undesirable outcomes. c. the resulting distribution of income will be fair and equitable. d. each good's price will equal the value of the labor used in its production.
"Tips" published in leading commercial or financial publications are unlikely to lead to profitable trades because
A) only wealthy individuals can buy stocks in the volume necessary to take advantage of tips. B) whatever is gained by trading on the basis of tips will be taxed away by the government. C) the news will already be reflected in the market prices of the assets. D) the news contained in the tips is usually inaccurate.
One means of enforcing a quota is to require importers to ________.
A. pay a sales tax B. pay an import tax C. obtain a sales permit D. obtain a license
When price is $5 per unit, quantity demanded is 12 units. When price is $6 per unit, quantity demanded is 8 units. The value of the absolute price elasticity of demand is approximately
A. 0.36. B. 2.20. C. 1.82. D. 4.00.