A decrease in the wage rate will change
A. the price the firm charges for the product, but it will not affect the demand for any of the inputs.
B. the amount of labor employed, and it may also change the amount of other inputs employed.
C. only the amount of labor hired.
D. the firm's profit-maximizing level output, but not its usage of inputs.
Answer: B
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Real standards of living can only go up with positive economic growth.
Answer the following statement(s) true (T) or false (F)
Market activity differs from government activity because
a. markets generally force prices to below-cost levels b. governments never charge for the services they provide c. markets do not use voluntary exchange mechanisms d. markets provide a direct link between benefits and costs e. governments have strong incentives to keep costs under strict control
Heuristics economize on the mental capabilities of people
Indicate whether the statement is true or false
Figure 4.4 illustrates the supply of tacos. A decrease in the supply of tacos is represented by a movement from:
A. point a to point b. B. point c to point b. C. S2 to S1. D. S0 to S1.