In theory, if a profit-maximizing firm in a perfectly competitive labor market found it advantageous to hire one less worker, the firm should pay a
A. higher wage rate to all previous workers hired.
B. lower wage rate but only to the most recently hired workers.
C. lower wage rate to all previous workers hired.
D. higher wage rate but only to the most recently hired workers.
Answer: C
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An important determinant of velocity is the rate of interest.
Answer the following statement true (T) or false (F)
In the graph of the Solow growth model, at any point to the left of the steady-state intersection we have national saving per person ________ than steady-state investment per person, causing (K/N) to ________
A) greater, increase B) greater, decrease C) less, increase D) less, decrease
Economists perceive a college applicant's grade point average and standardized test scores (such as SAT and ACT scores) to be rationing devices
Indicate whether the statement is true or false
The four components of planned aggregate expenditure are:
A. consumption, planned investment, government transfers, and net interest. B. consumption, planned investment, government purchases, and net exports. C. spending on durable goods, inventory investment, government debt, and net exports. D. spending on domestic goods, domestic services, foreign goods, and foreign services.