The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit. If the wage is $5 per hour, a ten cent per unit subsidy on the good sold by the firm will cause the firm to
A) demand less labor.
B) demand more labor.
C) raise the wage for workers to $5.10.
D) None of the above.
B
Economics
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An example of a perfectly competitive market would be the market for
a. tennis racquets. b. pizza. c. garbage collection. d. wheat.
Economics
Refer to the information. International trade in this case:
Answer the question on the basis of the following information for a private open economy. The letters Y, C, I g , X, and M stand for GDP, consumption, gross investment, exports, and imports respectively. Figures are in billions of dollars.
A. has an expansionary effect on GDP.
B. has a contractionary effect on GDP.
C. has no effect on GDP.
D. is causing inflation in this economy.
Economics