The equilibrium wage rate in an industry is found by
A) the intersection of the market demand curve for labor and the marginal revenue product curve of labor.
B) the intersection of the firm's demand curve for labor and the firm's supply curve of labor.
C) the intersection of the market demand curve for labor and the market supply curve of labor.
D) negotiations between the union leadership and the managers of the firms.
C
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If a good is labor intensive it means that the good is produced
A) using relatively more labor than goods that are not labor intensive. B) using labor as the only input. C) using more labor per unit of output than goods that are not labor intensive. D) using labor such that the total cost of labor is greater than the total cost of capital. E) using labor such that the cost of labor is more than 50% of total cost.
______ and ______ are explanations of how things work that help us understand and predict how and why economic agents such as consumers, producers, firms, government, and so on behave the way they do.
a. Correlations; models b. Theories; models c. Theories; aggregates d. Correlations; aggregates
In the spot market, the spread is the difference between the bid and offer rates and is the trader's profit margin.
a. true b. false
Beginning from the full-employment level of real GDP, an increase in one of the components of the aggregate demand curve will increase the:
A. average level of prices (CPI). B. unemployment rate. C. natural level of real GDP. D. level of investment spending.