To maximize profits, firms hire labor as long as
A) each additional hour hired produces more additional output than the real wage rate.
B) the total hours hired produces more additional output than the real wage rate.
C) each additional hour hired produces more additional output than the nominal wage rate.
D) the quantity of labor supplied increases as the real wage rate increases.
E) workers continue to supply labor to the firm.
A
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Collusion between two firms occurs when
A) announce that each will match its rival's market price. B) firms explicitly or implicitly agree to adopt a uniform business strategy. C) the firms independently pursue strategies that could hurt each other. D) firms act altruistically to bring about the economically efficient outcome.
In 2010, the debt-to-GDP ratio for the United States was approximately equal to
A) 90%. B) 17%. C) 37%. D) 67%.