Suppose the supply of labor schedule increases in a perfectly competitive labor market while the market demand schedule remains unchanged. A profit-maximizing representative firm will
A. hire fewer workers.
B. hire the same number of workers.
C. substitute capital for labor.
D. hire more workers.
Answer: D
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Refer to the table above. If at a price of $3 per loaf, the market supply of bread is 45 loaves, Seller 3's supply is:
A) 15 units. B) 24 units. C) 18 units. D) 20 units.
Land can be used to grow commercial Christmas trees or pulpwood. Which is the more "economically efficient" use of the land?
A) Raising commercial Christmas trees B) Raising pulpwood C) Raising a mixed combination of commercial Christmas trees and pulpwood D) It depends in part on the relative prices of Christmas trees and pulpwood.
Refer to Table 22-7. Consider the statistics in the table above in describing the following industrialized and developing countries. Are these consistent with the economic growth model? Briefly explain
What will be an ideal response?
Special Drawing Rights
A) are granted by the Fed to banks which want to trade in the foreign exchange markets. B) were eliminated when the Bretton Woods system broke down. C) are created by the IMF in its role as lender of last resort. D) were created by the Nixon administration on August 15, 1971.