If expectations are formed rationally and wages are inflexible in the short run, the short-run aggregate supply curve is
A) upward sloping.
B) horizontal.
C) vertical.
D) relatively flat.
C
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Which of the following statements is correct?
a. The value of the marginal product curve is the labor demand curve for competitive, profit-maximizing firms. b. A competitive, profit-maximizing firm hires workers up to the point where the value of the marginal product of labor equals the wage. c. By hiring labor up to the point where the value of the marginal product of labor equals the wage, the firm is producing where price equals marginal cost. d. All of the above are correct.
Standardized goods are:
A. the most common type of good produced. B. goods which are regulated by government quality standards. C. those sold in markets with regulated price systems. D. goods which are easily substitutable and not distinguishable.