Assume that labor and capital are complements in production and that the wage declines. Which of the following statements best describes the adjustment in the use of labor?
A) Adjustments in labor use are not influenced by adjustments in capital use.
B) The MRPL curve shifts downward in this case.
C) More labor is used both because of the reduced wage and increased use of capital.
D) Changes in labor use are indeterminate because the reduced wage and reduced use of capital have opposite influences on the use of labor.
C
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A relative price is
A) the number of dollars that must be given up in exchange for the good. B) also called the money price. C) not an opportunity cost. D) the ratio of one price to another price.
Which of the following is true of a used-car market?
A) Sellers have more information than the buyers. B) Gains from trade do not exist in this market. C) The cars sold are identical in quality. D) There is no consumer surplus in this market.
Which of the following industries would be considered to have a labor intensive production process?
A. Printing a novel B. Farming in a poor country C. Building a road. D. Driving a truck.
Slope is measured as run/rise.
Answer the following statement true (T) or false (F)