Refer to the diagram. If this labor market is purely competitive, the wage rate and level of employment respectively will be:





A.  D and E.

B.  C and E.

C.  B and G.

D.  B and F.


C.  B and G.

Economics

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Why is money as a medium of exchange important in an economy?

What will be an ideal response?

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Marginal cost is defined as:

A) the change in total cost due to a one unit change in output. B) total cost divided by output. C) the change in output due to a one unit change in an input. D) total product divided by the quantity of input.

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Which of the following will NOT shift the short-run aggregate supply function?

A) changes in labor costs B) changes in the costs of nonlabor inputs C) changes in the price level D) changes in the expected price level

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As a result of a tariff on imports,

a. imports will fall, exports will fall, and total output will decline. b. imports will fall, exports will rise, and total output will decline. c. imports will rise, exports will fall, and total output will expand. d. imports will rise, exports will rise, and total output will expand.

Economics