The labor demand curve slopes down because
A. fewer workers work at low wages.
B. capital will substitute for labor as wages decrease.
C. of the diminishing marginal product of labor.
D. of the income effect of rising wages.
Answer: C
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Special interest groups (such as doctors, teachers, lawyers, health insurance companies, the automobile industry and others) can best be characterized by which of the following statements?
(a) They are constantly working the government to seek rents from policy decisions. (b) They are resistant to change in governmental policies that benefit them at the expense of others. (c) They help push through federal policies that result in technological backwardness, low productivity and less overall economic growth. (d) They can be characterized by all of the above.
Government expenditures as a share of the U.S. economy are
a. the largest in the world. b. the smallest in the world. c. smaller than most Western European countries but larger than a number of high-growth Asian economies. d. larger than Canada, France, and the United Kingdom but slightly smaller than Germany and Italy.
Consider an economy made up of 100 people, 60 of whom old jobs, 10 of whom are looking for work, and 15 of whom are retired. The number counted as unemployed is:
A. 10. B. 15. C. 40. D. 30.
Say's law states that
A. supply will usually be greater than demand. B. supply and demand are never equal. C. supply creates its own demand. D. demand may be greater than supply.