Suppose a new technology allows firms to substitute mechanical tomato pickers for farm laborers. As a result, the demand curve for farm laborers will
A) become less elastic.
B) become more elastic.
C) shift to the right.
D) not be affected.
B
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In a hypothetical country, the average wage of five 40-year-old citizens with college education is $36,896, and the average wage of five 40-year-old citizens with high school education is $25,864
What is the returns-to-college education in the country? Is there any limitation of this analysis? Explain your answer.
As a result of the 1986 Tax Reform Act, in 1988 some high-income taxpayers had lower marginal tax rates than middle-income taxpayers
a. True b. False
If the value of the marginal product of labor is less than the wage, then the firm could
a. increase profit by hiring additional labor. b. increase profit by reducing the amount of labor hired. c. increase revenue by lowering output. d. reduce total cost by hiring additional workers.
Equilibrium real GDP rises after the dollar strengthened. From this, we can conclude that
A. the decrease in aggregate demand was less than the increase in aggregate supply. B. the increase in aggregate demand was greater than the decrease in aggregate supply. C. the increase in aggregate demand was less than the decrease in aggregate supply. D. the decrease in aggregate demand was more than the increase in aggregate supply.