In ________, changes in technology affect the marginal revenue product of a unit of labor input. In ________, changes in technology affect the marginal cost of a unit of output.
A. the labor market; the product market
B. the product market; the labor market
C. output markets; input markets
D. all markets; all markets
Answer: A
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Wage contracts force businesses to adjust wages rather than employment in response to an unexpected change in aggregate demand
a. True b. False Indicate whether the statement is true or false
If a corporation earns a profit, how do owners of the firm share in the profit?
A) through coupon payments on that firm's bonds B) through dividend payments on shares of that firm's stock C) by selling any bonds or stocks owned and realizing a capital gain D) by raising the interest rate on bonds
Government policies to raise the rate of productivity growth include all of the following except
A. improving infrastructure. B. improving human capital development. C. encouraging research and development. D. reducing the government budget surplus.
If production function q1 = f(L, K), which of the following production functions illustrates neutral technical progress?
A) q2 = f(1.25L, 1.25K) B) q2 = f(1.25L, K) C) q2 = f(L, 1.25K) D) q2 = 1.25 * f(L, K)