A technological advance that increases labor productivity will:
A. decrease the demand for labor as MP falls.
B. decrease the demand for labor as fewer workers are needed.
C. decrease the supply of labor as fewer workers are needed.
D. increase the demand for labor as MP rises.
Answer: D
You might also like to view...
Suppose a paper mill earns $1,000,000 in profits when it pollutes a river, and it can abate pollution at a cost of $A. The effects of the pollution are confined to a single farmer who earns $400,000 if the water he uses from the river is clean and $300,000 if it's polluted. What is the combined profit of both firms without abatement?
A. $1,300,000 B. $900,000 C. $700,000 D. $1,400,000
Under the non-strategic view of bargaining, the terms of agreement are determined by
a. Each parties outside options b. Your gain from agreement c. Your opponents gain from agreement d. All of the above
The Producer Price Index (PPI) is based on prices paid for supplies and inputs by producers of goods and services. The PPI in general has increased over time representing that the cost of living has increased over time.
Select whether the statement is true or false. A. True B. False
Which of the following statements describes the difference between real and nominal GDP?
A. Real GDP includes only goods; nominal GDP includes goods and services. B. Real GDP is measured using constant base-year prices; nominal GDP is measured using current prices. C. Real GDP is equal to nominal GDP less the depreciation of the capital stock. D. Real GDP is equal to nominal GDP multiplied by the CPI.