In a laborabundant country, free trade will cause a(n) __________ in the rental of capital and a(n) _________ in the marginal product of capital.
a. increase; increase
b. increase; decrease
c. decrease; decrease
d. decrease; increase
Ans: c. decrease; decrease
Economics
You might also like to view...
Explain why it might be necessary in some circumstances for firms to pay workers wages that are higher than the legislated minimum wage even for jobs requiring low skills
What will be an ideal response?
Economics
If supply rises, what happens to equilibrium price and quantity?
What will be an ideal response?
Economics
Countries with more economic freedom during 1980-2009 tended to do which of the following?
What will be an ideal response?
Economics
One worker produces 5 rocking chairs. To produce 10 rocking chairs it will be necessary to hire more than two workers, if diminishing returns have set in.
Answer the following statement true (T) or false (F)
Economics