With labor migration, the destination country experiences:
A. An increase in output and a rising wage rate
B. An increase in output and a falling wage rate
C. A decrease in output and a falling wage rate
D. A decrease in output and a rising wage rate
B. An increase in output and a falling wage rate
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Investment spending will decrease when
A) firms become more optimistic about earning future profits. B) the corporate income tax decreases. C) business cash flow decreases. D) the interest rate falls.
When we solve the firm's dual production problem (i.e., maximize output subject to a cost constraint) by the method of Lagrange multipliers, the optimal value of the Lagrange multiplier equals the:
A) marginal product per unit cost of each variable input. B) marginal product of capital. C) marginal product of labor. D) marginal cost of production.
Which of the following would cause the production function to shift upward?
a. A decrease in the capital stock b. A decrease in human capital c. An increase in population d. An increase in human capital e. Diminishing returns to labor
In the markets for goods and services in the circular flow diagram, households act as