The individual firm operating in a perfectly competitive labor market
A) can hire more labor only by offering a higher wage.
B) faces an inelastic demand for labor.
C) will pay less to the additional labor employed.
D) can buy all the labor it wants at the going market wage rate.
D
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What is a black market and how does it influence the market for rental housing if a rent ceiling creates a housing shortage? What determines the level of the black market rent?
What will be an ideal response?
A financial strategy that reduces the chance of suffering losses arising from foreign exchange risk is referred to as
A) hedging. B) foreign exchange leverage. C) conversion depletion. D) transaction mitigation.
According to rational expectations theory,
a. there is absolutely nothing government can do, even in the short run, to reduce the economy's unemployment rate. b. the government can use fiscal policy such as increased government spending or lower tax rates to reduce unemployment. c. a modern extension of Keynesian economics exists. d. discretionary fiscal policy is essential for prolonged growth. e. market participants can be fooled in the long run by monetary and fiscal policy rules.
A risk premium is the added return an investor needs to compensate for the risks of future payments.
Answer the following statement true (T) or false (F)