All of the following make the demand for labor more elastic EXCEPT
A) greater elasticity of demand for the final product.
B) the longer the time period under consideration.
C) the smaller the proportion of total costs accounted for by labor.
D) the easier it is to substitute another input for labor.
C
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A mutual fund that purchases a wide variety of stocks will
A) eliminate systematic risk. B) minimize nonsystematic risk. C) minimize market risk. D) minimize default risk.
If the current Real GDP is less than Natural Real GDP, then the economy is
A) in long-run equilibrium. B) in a recessionary gap. C) in an inflationary gap. D) possibly in short-run equilibrium. E) b and d
According to the World Bank, nearly 2 billion people are classified as being in ________ poverty.
A. harsh B. extreme C. overwhelming D. severe
A firm is currently hiring capital and labor so that MPL/PL > MPK/PK. If the firm wishes to maximize profits it should hire
A. more capital and more labor. B. more labor and less capital. C. less labor and more capital. D. less labor and less capital.