A perfectly competitive firm should hire additional units of labor in a competitive labor market if
a. marginal revenue is less than marginal cost
b. the marginal revenue product exceeds the wage rate
c. total revenue exceeds total cost
d. the marginal product of labor exceeds the wage rate
e. the marginal product of labor is less than the wage rate
B
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When economists refer to the role of money as a unit of account, they mean that
A) most accounting systems reflect that goods are purchased with currency. B) most accounting systems reflect that goods are purchased with checks. C) money gives traders a way of measuring value in the economy. D) money makes it possible for specialization to take place.
While a trade-off between inflation and unemployment may exist when people expect no inflation, when they realize inflation is occurring, what happens?
a. The trade-off increases. b. The trade-off decreases. c. The trade-off disappears. d. The trade-off shifts.