The individual firm operating in a perfectly competitive labor market
A. can hire more labor only by offering a higher wage.
B. can buy all the labor it wants at the going market wage rate.
C. faces an inelastic demand for labor.
D. will pay less to the additional labor employed.
Answer: B
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Government capital consists of
A) money owned by the government. B) securities owned by the government. C) the buildings owned by the government in Washington, D.C. D) long-lived physical assets owned by the government.
Refer to Figure 9.7. The amount the government will have to pay to producers to sustain this policy is at least
A) $0. B) $10,000. C) $15,000. D) $20,000. E) $100,000.
You just won the lottery. You have a choice of three different prize options. Option #1: receive $1,200 immediately Option #2: receive $1,500 a year from now Option #3: receive $5,000 five years from now. If the interest rate is 10% the ranking of the options, from the lowest present value to the highest is
a. Option #2, Option #3, Option #1 b. Option #3, Option #1, Option #2 c. Option #1, Option #2, Option # d. Option #1, Option #3, Option #2 e. Option #3, Option #2, Option #1
In general, as the amount of labor input increases, the amount of output
a. increases. b. decreases. c. remains constant. d. increases only if the capital stock also increases.