In a competitive labor market, what is the profit-maximizing number of workers that a firm will hire?
What will be an ideal response?
In competitive markets, firms will hire labor up to the point where the value of the marginal product of labor is equal to the market wage. The value of the marginal product of labor is the contribution of labor to the firm's revenues, while the wage is the cost of labor. So, firms will hire up to the point where the additional revenue is equal to the additional cost of hiring one more worker.
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In actual practice, short-term interest rates and long-term interest rates usually move together; this is the major shortcoming of the
A) segmented markets theory. B) expectations theory. C) liquidity premium theory. D) separable markets theory.
The federal income tax system is regressive.
Answer the following statement true (T) or false (F)
Which of the following is a true statement about the length of recessions and expansions in the United States economy?
A) After 1950, the length of expansions equaled the length of recessions. B) After 1950, the length of expansions were much less than the length of recessions. C) After 1950, the length of expansions were much longer than the length of recessions. D) After 1950, the length of expansions were brief and almost nonexistent.
An industry with a ________ long-run supply curve is called a constant-cost industry.
A. negative sloping B. horizontal C. positive sloping D. vertical