The question of how much labor a firm will hire comes down to:
A. whether added workers are going to generate more revenue than what it costs to hire them.
B. if the added workers are going to add revenues to the firm.
C. whether the value of the marginal product is greater than, less than, or equal to the average total cost.
D. the healthcare costs they incur by hiring them.
A. whether added workers are going to generate more revenue than what it costs to hire them.
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Using trade barriers to address labor standards does all of the following EXCEPT it
A) leads to deadweight losses. B) redistributes income. C) works more effectively for countries that are small relative to the total market. D) potentially makes conditions worse as production moves to the informal sector.
An investment tax credit, which would lower taxes for firms that invested in new capital equipment, would shift the long-run aggregate supply curve to the right over time
a. True b. False Indicate whether the statement is true or false
Within the Keynesian aggregate expenditure-output model, if an economy operates below full employment:
A. a reduction in wage rates and resource prices will soon restore full-employment equilibrium. B. a reduction in the real interest rate will soon restore full-employment equilibrium. C. an increase in the real interest rate will soon restore full-employment equilibrium. D. the economy may remain below full employment unless aggregate expenditures increase.
An increase in technology causes the optimum level of capital per worker to rise in the long run or steady state
a. true b. false