In a perfectly competitive labor market, the labor supply curve facing the firm will be
A) upward sloping.
B) downward sloping.
C) horizontal.
D) vertical.
C
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With velocity constant, an increase in the money supply multiplied by velocity yields the increase in equilibrium
A) interest rates. B) money demand. C) price level. D) income.
Consider two situations: In situation A the production of widgets is monopolized by a single firm. In situation B the production of widgets is perfectly competitive. In both situations the supply of labor to widget makers is infinitely elastic at a wage of w. Which of the following statements is true?
a. The marginal value product of labor will be the same in the two cases. b. The marginal value product of labor is higher in case B than in case A. c. The marginal value product of labor is higher in case A than in case B. d. From the information given it is not possible to make a definite statement about the marginal value product of labor.
If Japanese tourists visit Yellowstone Park, what is the effect in the foreign-exchange market?
A. It will increase demand for Japanese yen. B. It will decrease demand for Japanese yen. C. It will increase supply of Japanese yen. D. It will decrease supply of Japanese yen.
Saturday afternoon you can either attend a street festival, work and earn $100, or study for your midterm exam. You flip a coin between the street festival and studying, but did not really consider working. The coin flip determined that you would stay home and study. The opportunity cost of the time spent studying includes:
A. The time you spent deciding upon using a coin flip to determine your Saturday afternoon activity. B. earning a high score on your midterm. C. the loss of $100 worth of wages and going to the street festival. D. the benefit that could have been received at the street festival.