If firms are competitive and profit-maximizing, the demand curve for labor is determined by
a. the opportunity cost of workers' time.
b. the value of the marginal product of capital.
c. the value of the marginal product of labor.
d. the ratio of the marginal product of labor to the marginal product of capital.
Answer: c. the value of the marginal product of labor.
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Refer to Figure 5-9. The efficient output is
A) Q1. B) Q2. C) Q3. D) Q4.
Which of the following is a reason why the labor demand curve would shift rightward?
a. A decrease in the amount of capital equipment b. An increase in educational attainment of the population c. A shift to earlier retirement d. An increase in population e. An increase in the number of two-family households
Explain how and why economic events in the U.S. affected the economies of Thailand, South Korea, and Indonesia and vice-versa
A surplus of wheat:
A. is impossible if people are hungry. B. is impossible if the price of wheat is below equilibrium. C. will result when the quantity demanded exceeds the quantity supplied at the current price. D. is unlikely to cause any change in the price of wheat.