Which of the following is an assumption made about a competitive labor market?
a. A firm must offer a higher wage rate to attract more labor.
b. A firm must offer a lower wage rate to attract more labor.
c. A firm cannot influence the market wage rate.
d. The labor supply curve facing each firm is inelastic.
e. Workers compete for jobs and firms pay a variety of wage rates.
C
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________ choose the quantities of goods and services to produce, while ________ choose the quantities of goods and services to buy
A) Households; firms B) Firms; households and the government C) The government; firms D) Firms; only households E) Households; the government
Refer to Table 13-2. What is likely to happen to the product's price in the long run?
A) It will fall. B) It will remain constant. C) It will increase. D) This cannot be determined without information on its long-run demand curve.
One problem that investors in foreign countries face is the possibility of a decline in the value of that foreign country's currency. Which of the following would be an effective way to offset this problem?
A) Be ready to pull out at the first sign of trouble. B) Convert as many of your dollars into their dollars as possible. C) Hedge through currency swaps. D) Finance your investment outside of that country.
Two jobs have different training requirements, and the job that requires more extensive training currently pays $20 more per hour. The jobs are equivalent in all other respects. If labor is migrating from the job with lower training requirements to the job with greater training requirements, then
a. the equilibrium compensating wage differential is more than $20 per hour b. the equilibrium compensating wage differential equals $20 per hour c. the wage rate will drop for the job with lower training requirements d. the wage rate will drop for the job with greater training requirements e. labor supply will increase for the job with lower training requirements