​Which of the Following Statements Is True

question 72

Multiple Choice

​Which of the following statements is true?

• A)​The ATM model of money is a general­equilibrium model.
• B)​The opportunity cost of holding money in the ATM model increases when the nominal interest rate declines.
• C)In a general-equilibrium model, most of the key macroeconomic variables are exogenous.
• D)​​Normally, results from a general equilibrium model can be applied to a wider range of problems than the results from a partial-equilibrium model.

Recognize the role of product demand in influencing labor demand.

Explain the impact of complementary and substitute resources on labor and product markets.

Understand how changes in input prices affect firms' resource allocation decisions.

Analyze the relationship between labor demand and the marginal revenue product of labor.

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Definitions:

Higher Education

Tertiary education provided by universities and colleges that leads to an academic degree or professional qualification.

Labor Market Segmentation

The division of the labor market into distinct sub-markets or segments, each with its own wage rates, conditions, and employment opportunities, often based on skill level, industry, or geography.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and marked by significant events like the Holocaust and the use of nuclear weapons.

Internal Labor Markets

Are social mechanisms for controlling pay rates, hiring, and promotions within corporations while reducing competition between a firm’s workers and external labor supplies.