A temporary price differential in resource markets is
a. eliminated by resource movements
b. caused by a failure of firms to maximize profits
c. eliminated by resources moving from highly-valued uses to lower-valued uses
d. caused by Congress increasing the federal minimum wage
e. a result of firms using the MRP = MRC rule in hiring resources
A
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An appreciation is
A) a decrease in the trade deficit. B) a decrease in the value of currency. C) an increase in the trade surplus. D) an increase in the value of currency.
The figure above illustrates that if this country wishes to have F2 - F1 additional food by moving from point A to point B, it will
A) have to find additional workers, because the country already is operating on its production possibilities frontier. B) be unable to do so until additional technological progress is made. C) have to sacrifice C1 - C2 clothing in order to free the resources necessary to produce the additional food. D) require that all the unemployed resources in the country be put to work.