Which of the following is not correct?
a. In a labor market, the wage adjusts to balance the supply and demand for labor.
b. A profit-maximizing firm hires workers so long as the wage rate exceeds the value of the marginal product of labor.
c. Any event that changes the supply or demand for labor must change the equilibrium wage.
d. Any event that changes the supply or demand for labor must change the value of the marginal product.
b
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What was the main cause for the reversal-of-fortune of many countries?
What will be an ideal response?
The concepts of exogeneity, strict exogeneity, and predeterminedness
A) are defined in such a way that strict exogeneity implies exogeneity. B) can be used interchangeably. C) are defined in such a way that exogeneity implies strict exogeneity. D) correspond to endogeneity, strict endogeneity, and lagged endogenous variables.
If the demand curve is less elastic than the supply curve, then:
A. the buyers will bear a greater tax incidence. B. the sellers will bear a greater tax incidence. C. the buyers will bear a smaller tax burden than sellers. D. the sellers will bear a greater tax burden than buyers.
_____ are elements of fiscal policy that automatically change in value as national income changes
a. Statistical discrepancies b. Exchange rates c. Budget deficits d. Automatic stabilizers e. Supply-side shocks