What is the input-substitution effect?
What will be an ideal response?
The change in the quantity of labor demanded resulting from a change in the relative price of labor relative to the price of other inputs.
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The figure above shows the market for low-skilled labor in Midland city. The government sets a minimum wage at $6 per hour. The minimum wage ________ the employers' surplus by ________ million per year
A) decreases; $60 B) decreases; $120 C) increases; $40 D) increases; $100
All of the following are major greenhouse gases (GHGs), EXCEPT
a. carbon dioxide (CO2) b. methane (CH4) c. nitrous oxide (N2O) d. volatile organic compounds (VOCs)
Consider the labor market for short-order cooks. A labor-augmenting technological change such as a faster food processor will cause
a. both equilibrium wages and equilibrium employment to increase. b. both equilibrium wages and equilibrium employment to decrease. c. equilibrium wages to increase and equilibrium employment to decrease. d. equilibrium wages to decrease and equilibrium employment to increase.
Which of the three basic economic questions deals with choosing the correct mix of output?
A.) What to produce. B.) How to produce. C.) For whom to produce. D.) How much to charge.