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.
Answer: D
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Which of the following accounts for the largest percentage of output in the United States?
a. The government b. Business firms c. Households d. Banks e. The rest of the world
If a state government reduces property taxes for residents at the same time that it increases the state income tax, what will happen to the expenditures schedule of the residents of this state?
a. It shifts upward. b. It shifts downward. c. It becomes less steep. d. It becomes steeper. e. It does not change.
Economists generally agree that:
A. trade restrictions will increase the welfare of a large country even if other countries retaliate. B. trade sanctions are not an effective way of achieving international political objectives. C. infant industry protection, although justified in theory, often becomes permanent because infant industries fail to grow up. D. trade between two nations generally benefits one at the expense of the other.
Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to overstate the true extent of joblessness?
A) inflation B) discouraged workers C) counting people as employed who are working part time, although they would prefer to be working full time D) unemployed persons falsely report themselves to be actively looking for a job