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Unformatted text preview: (c) You are selling your old bike to your friend (d) You are selling your old car so hire a dealer and pay commission. 6. Which of the following is not a decision made by a competitive ±rm? c (a) The number of employees to hire (b) How much to invest in machines (c) What price to ask for its product 1 (d) How much to produce 7. Suppose that a major natural disaster destroyed a large part of a country&s capital stock but miraculously did not cause anybody bodily harm. What will happen to the real wage rate?(assuming ±rms are acting competitively) decreases 8. What happens to US GDP if import of cars from South Korea increased? doesn&t change 9. What are three assumptions of market environment and ±rm&s behavior to make the below is true? W P & L + R P & K = Y all labors are the same labor market is perfectly competitive ±rms are pro±t maximizers 2...
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- Spring '08
- Economics, Gdp, GDP measures, real wage rate, Ow, anybody bodily harm