Which of the following statements is true?
A. Derived demand for labor depends on the demand for the other inputs into production.
B. Unions can either increase demand or decrease the supply of labor.
C. Investment in human capital is expected to decrease the demand for those workers because there will be a greater number of qualified workers available.
D. Unions can effectively increase wages by lobbying for looser immigration laws.
Answer: B
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When the price level falls,
A) there is a movement upward along the AS curve. B) both the potential GDP line and the AS curve shift leftward. C) the AS curve shifts leftward but the potential GDP line does not shift. D) the AS curve shifts rightward but the potential GDP line does not shift. E) there is a movement downward along the AS curve.
Explain the main arguments in favor of economic stabilization
Assume that the price of labor and capital have remained the same, but that the average educational level of workers has increased and therefore the productivity of labor has increased. This would lead a firm to
A. not change its production technology, but to produce fewer units of output. B. use a more labor-intensive technology. C. use only labor to produce the product. D. use a more capital-intensive production technology.
When demand is perfectly inelastic, there is no change in quantity demanded after a change in price.
Answer the following statement true (T) or false (F)