The supply of labor to the individual firm in a perfectly competitive market is
A) perfectly inelastic at the current equilibrium employment level.
B) perfectly elastic at the current market clearing wage rate.
C) downward sloping.
D) equal to the marginal revenue of output.
Answer: B
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Katherine gives piano lessons for $20 per hour. She also grows flowers, which she arranges and sells at the local farmer's market. One day she spends 5 hours planting $50 worth of seeds in her garden. Once the seeds have grown into flowers, she can sell them for $150 at the farmer's market. Katherine's accounting profits are
a. $100, and her economic profits are $100. b. $100, and her economic profits are $0. c. $0, and her economic profits are $100. d. $0, and her economic profits are $-100.
Creating policy with the goal of increasing economic growth would be considered:
A. to only help if directed toward poor areas. B. to indirectly hurt efforts to eliminate poverty. C. to indirectly help eliminate poverty. D. None of these is true.