If the graph shown is displaying a competitive market and the market is currently offering a wage more than P*:
A. there would be a shortage of workers who want to work at that wage.
B. there would be unemployment in the market.
C. firms would have a hard time finding employees.
D. other firms would increase demand and shift the equilibrium.
B. there would be unemployment in the market.
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Suppose a firm hires labor in a competitive labor market. When will hiring more labor increase the firm's profit?
a. When the marginal revenue product of labor exceeds the wage rate. b. When the marginal product of labor is positive. c. When the marginal labor cost is falling. d. When the wage rate is less than the firm's marginal cost of production.
Explain what the phrase "price rationing" means
What will be an ideal response?
An open economy is an economy that has
A) its own stock market. B) governmental regulations regarding the number of hours retail establishments must remain open on a daily basis. C) interactions in trade or finance with other economies. D) governmental regulations regarding public information that is included in corporate finance reports.
Which of the following events will help to burst an asset price bubble?
A) Speculative demand for the asset quickly declines. B) Speculative demand for the asset quickly increases. C) New information leads buyers to doubt that prices will continue to increase in the future. D) A and C are correct