If the Supply of Labor to a Firm Is Perfectly

question 293

Multiple Choice

If the supply of labor to a firm is perfectly elastic at the going wage rate established by the forces of supply and demand then

• A) the firm is price taker.
• B) the firm can only hire additional units of labor by driving the wage rate up.
• C) the wage rate has been decreasing.
• D) full employment exists in the labor market.

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Definitions:

Regulating Banks

The process of establishing and enforcing rules and standards that govern the banking industry to ensure stability and protect consumers.

Banking System

The banking system consists of a network of banks and financial institutions that provide financial services, including managing deposits, lending, and currency exchange.

Federal Reserve Board

The Federal Reserve Board is the governing body of the Federal Reserve System, the central banking system of the United States, responsible for setting national monetary policy.

M1

A category within the money supply that includes physical currency and coin, demand deposits, traveler's checks, and other checkable deposits.