To get a profit-maximizing firm in a perfectly competitive labor market to hire another worker, the firm will need to
A. raise the wage rate paid to that last worker hired and also to all previous workers hired.
B. lower the wage rate paid to that last worker hired and also to all previous workers hired.
C. lower the wage rate paid to the last worker hired only.
D. raise the wage rate paid to the last worker hired only.
Answer: A
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Use the following table to answer the question below.Alexandra's Production Possibilities ScheduleNatalia's Production Possibilities ScheduleNumber of Scarfs Knitted per dayNumber of Sweaters Knitted per dayNumber of Scarfs Knitted per hourNumber of Sweaters Knitted per hour040433236242916112080What is Natalia's opportunity cost of knitting a sweater?
A. 1/2 of a scarf B. 1/3 of a scarf C. 2 scarves D. 3 scarves
If domestic saving exceeds investment, there will be a current account surplus
Indicate whether the statement is true or false
The income elasticity of demand measures
a. the relative certainty of future income b. how elastic supply is compared to demand c. the percent change in quantity demanded relative to the percent change in income d. the percent change in income relative to the percent change in quantity demanded e. how much income will stretch to make expected payments
If market interest rates fall, the selling price of existing bonds in the market will, ceteris paribus,
A. Fall. B. Rise. C. Not change. D. Rise or fall based on other market conditions.