A.C. Pigou argued that the government can deal with a positive externality in consumption by giving consumers a subsidy equal to the value of the externality
Indicate whether the statement is true or false
TRUE
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If capital is fixed, but a firm varies labor
A) the firm stays on the same isoquant. B) the firm moves to a new isoquant. C) the firm might move to a new isoquant, depending on how much labor is added. D) the firm's output will be dependent on the marginal rate of technical substitution.
Exhibit 2-14 Production possibilities curve
In Exhibit 2-14, which of the following explains this economy's movement from point E to point F?
A. The rate of unemployment in this economy would have increased. B. Consumption goods production has increased, but capital goods production has decreased. C. The economy has decreased unemployment, but some degree of unemployment still exists D. The economy has achieved full employment.
Prior to World War I, the U.S. government's attitude towards labor unions was one of
A) indifference. B) support. C) hostility. D) support, except when it came to unions of public employees.
The marginal revenue product of labor curve will always shift to the right if
A. the price of capital rises. B. product demand increases and product price increases. C. the wage rate rises. D. product demand decreases and product price decreases.