How is a firm's labor demand curve affected when the price of its product rises?
What will be an ideal response?
If the price of a firm's product increases, it increases its supply of the product. This increases the firm's demand for labor at the existing market wage. Therefore, the firm's labor demand curve shifts to the right.
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If both total employment and total output in an economy grow by 2 percent each year, then the annual growth in labor productivity in the economy over a decade will be equal to _____
a. 0 percent b. 2 percent c. 10 percent d. 20 percent e. 2 percent times the size of the labor force
An optimizing consumer will select the consumption bundle in which the marginal rate of substitution
a. is equal to the price of the least-expensive good. b. exceeds the marginal utility of each good by the greatest amount. c. is less than the slope of the budget constraint. d. None of the above is correct.
Suppose that there is a decrease in the costs of production that shifts the short-run aggregate-supply curve right. If there is no policy response, then eventually
a) because unemployment is high, wages will be bid up and short-run aggregate-supply curve will shift right. b) because unemployment is high, wages will be bid down and short-run aggregate-supply curve will shift right. c) because unemployment is low, wages will be bid up and short-run aggregate-supply curve will shift right. d) because unemployment is low, wages will be bid up and short-run aggregate-supply curve will shift left.
A non-discriminating pure monopolist is generally viewed as:
A. Productively efficient, but allocatively inefficient B. Productively inefficient, but allocatively efficient C. Both productively and allocatively inefficient D. Both productively and allocatively efficient