What must be true in a perfectly competitive equilibrium?
a. the marginal product of labor is equal to the real wage for every unit of labor.
b. the marginal product of labor is equal to the money wage for the last unit of labor.
c. the marginal product of labor can be less than the real wage for some units of labor.
d. the marginal product of labor can be greater than the price level for some units of labor.
e. the marginal product of labor only has to be equal to the real wage for the last unit of labor.
C
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Which of the following cases is an OCA that is NOT preferred by a home country?
A) The home country faces symmetric shocks with the other country. B) The labor market is well integrated, allowing for migration. C) The home country faces asymmetric shocks with the other country. D) The home economy is well integrated with the other country, carrying out vast amounts of trade.
The short-run aggregate supply curve shifts when
I. the full-employment quantity of capital changes. II. technology advances. A) I only B) II only C) neither I nor II D) I and II