If the wage rate rises, labor's share in the total costs of a production process:
a. will increase.
b. will decrease.
c. may increase or decrease depending on the elasticity of demand for the product.
d. may increase or decrease depending on the ease of substitution of other inputs for labor.
d
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The activities in which U.S. workers are relatively more productive
A) pay higher wages. B) are those in which the United States has a comparative advantage. C) are at risk of disappearing from the United States when NAFTA is completed. D) Both answers A and B are correct.
To maximize joint profits, the members of a cartel have to determine the level of industry output by setting marginal revenue qual to the cartel's joint marginal costs of production
Indicate whether the statement is true or false
Over the next three years, the expected path of 1-year interest rates is 4, 1, and 1 percent. The expectations theory of the term structure predicts that the current interest rate on 3-year bond is
A) 1 percent. B) 2 percent. C) 3 percent. D) 4 percent.
Since the mid-1970s, compared to the United States, European unemployment rates are/is
A. higher. B. much lower. C. about the same as in the United States. D. not compared to the United States, because there are no unemployed in Europe