Why is the demand for labor downward sloping in the short run?
What will be an ideal response?
The demand for labor is its marginal revenue product. The marginal revenue product is marginal product times the price of output. Marginal product of labor and thus marginal revenue product is negatively sloped due to diminishing returns to labor.
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The first table above gives the labor demand and labor supply schedules for a nation. The second table gives its production function
a. What are the equilibrium real wage rate and the level of employment? b. What is potential GDP?
Suppose that the quantity demanded for cars exceeds the quantity supplied of cars. We would expect that
A. the demand will decrease (demand will shift to the left to meet the supply. B. the price of cars will increase. C. the supply will increase (supply will shift to the right to meet the demand. D. the price of cars will decrease.
Consumer spending accounts for what share of GDP?
a. 20% b. 40% c. 70% d. 90%
Consumers' willingness to pay for a good minus the amount they actually pay for it equals
a. consumer surplus. b. consumer benefit. c. price discriminant. d. deadweight loss.