What is the price of a unit of labor in a competitive labor market?
What will be an ideal response?
The price of labor in a competitive labor market is the market wage. Competitive firms are price takers in the labor market, which means that they can hire all of the labor they want at the existing market wage.
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Trade between two countries can benefit both countries if
A) each country exports that good in which it has a comparative advantage. B) each country enjoys superior terms of trade. C) each country has a more elastic demand for the imported goods. D) each country has a more elastic supply for the exported goods. E) each country produces a wide range of goods for export.
The central bank of which of the following countries dominated monetary policy within the Exchange Rate Mechanism?
A. France B. The United States C. Germany D. The United Kingdom