In order to maximize its profits, a firm that hires workers in a perfectly competitive labor market will hire workers until the:
A. extra revenue generated from hiring another worker equals the extra cost of hiring that worker.
B. the marginal wage rate equals marginal product of the last worker.
C. extra revenue generated from hiring another worker equals the extra profit from hiring that worker.
D. the marginal product of labor begins to decline.
Answer: A
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Explain the economic concept of price elasticity of supply. How is price elasticity of supply calculated?
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Which of the following would most likely NOT be taught in a macroeconomics course?
A) price changes in the world's oil markets B) factors leading to different economic growth rates among countries C) government actions in response to a slowdown in the economy D) the relationship between the inflation rate and the unemployment rate