If labor supply of unskilled workers is perfectly inelastic, then
A. the labor supply curve of unskilled workers is vertical at the total number of unskilled workers in the market.
B. firms face an increasing marginal cost of hiring unskilled labor.
C. firms face a horizontal value of marginal product of employment curve.
D. workers will supply more hours of labor to the market when wages increase.
E. the labor supply curve of unskilled workers is horizontal at the market-clearing wage.
Answer: A
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When a country's labor market is in equilibrium in the specific factors model, the wage rate
A) will be the same in both sectors. B) will be higher in the export-competing sector. C) will be higher in the import-competing sector. D) will be higher in the sector where product price is higher. E) will be higher in the sector where product price is lower.
A discouraged worker is one who: a. is underqualified for his current job
b. dislikes his current job but is afraid to quit. c. drops out of the labor force because he cannot find a job. d. quits his job because the possibility of advancement was very low. e. is overqualified for his current job.