Absent government interference, the wage rate for labor in a competitive market is established
A. solely by the firm's demand for labor.
B. by both the demand for and supply of labor at each individual firm.
C. solely by the market supply of labor.
D. by the the market supply and market demand for labor.
Answer: D
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An international agency uses the prices of iPads in different countries to compute the exchange rate between the currencies of these countries. Which of the following measures is based on a similar idea?
A) The midcap index B) The Human Development Index C) The Big Mac Index D) The GDP deflator
The production of a good or service by an authority that receives the most of its revenue from the government is referred to as
A) public provision. B) private subsidies. C) vouchers. D) copyrights. E) Coasian production.
Refer to Scenario 17.3. Moral hazard would be eliminated in this situation if
A) the insurer would always charge $300. B) the insurer would always charge $6000. C) the insurer could costlessly monitor whether a fire prevention program has been implemented, and adjust the premium upward if it is not. D) the insurer could costlessly monitor whether a fire prevention program has been implemented, and adjust the premium downward if it is not. E) the fire did not occur.
The net export function illustrates that:
a. net exports are a positive function of domestic income. b. net exports are independent of domestic income. c. net exports are a negative function of domestic income. d. exports are a negative function of foreign income. e. exports are independent of foreign income.