In a perfectly competitive labor market, no individual firm's employment decision can affect the market wage because
a. union agreements prevent any firm from altering the wage rate
b. each firm is ignorant of the market wage rate
c. the demand for labor is a derived demand
d. each firm hires a very small portion of the labor services available
e. the wage rate is regulated by the government
D
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Resolving Adam Smith’s diamond-water puzzle involves
A. realizing that price is not directly related to total utility. B. knowing that at optimal purchase, price will tend to equal marginal utility. C. knowing that, as increasing quantities of a good are consumed, marginal utility diminishes and, conversely, consuming a small quantity of a good produces high marginal utility. D. All of the responses are correct.
If initial equilibrium real Gross Domestic Product (GDP) is $400 billion, MPC = 0.9, and autonomous investment increases $40 billion, equilibrium real Gross Domestic Product (GDP) will be
A) $440 billion. B) $360 billion. C) $600 billion. D) $800 billion.
A failure in coordination between workers and employers is most likely to cause an expansionary gap.
a. true b. false
At a recent faculty meeting, Lorraine Waverly, president of Skywalker College, announced that enrollment is up by 12 percent over the previous semester. If enrollment the previous semester was 3,250 students, what is the student enrollment this semester?
A) 390 B) 2,860 C) 3,640 D) 4,030