The demand for labor increases when the:
A. value of the marginal product of labor increases.
B. real wage decreases.
C. value of the marginal product of labor decreases.
D. real wage increases.
Answer: A
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
________ dictates the lowest wage that firms may pay for labor
A) The black-market wage B) A maximum wage requirement C) A minimum wage law D) A price-ceiling wage
If government increased Social Security benefits and decreased the salaries of government workers by the same amount, which of the following is the expected immediate effect? a. An increase in the budget deficit and government purchases of goods and services
b. An increase in the budget deficit, but no change in government purchases of goods and services. c. An increase in the budget deficit and a decrease in government purchases of goods and services. d. No change in the budget deficit because there has been no change in government purchases of goods and services. e. No change in the budget deficit because government purchases of goods and services have decreased by the same amount as transfer payments have increased.
Which of the following goods is least likely to be provided by the private sector?
a. a good characterized by nonrivalry in consumption from which nonpaying customers can be excluded b. a good characterized by nonrivalry in consumption from which paying customers cannot be excluded c. a good characterized by rivalry in consumption from which nonpaying customers can be excluded d. a good for which the marginal private benefit to an individual exceeds the marginal cost of producing the good