A firm's demand for labor will increase if the:
A. price of the firm's output decreases.
B. marginal product of labor decreases.
C. wage rate rises.
D. price of the firm's output increases.
Answer: D
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Refer to Budget Lines. Which of the following changes is consistent with the situation shown in the diagram?
a. The consumer's income fell.
b. The relative price of good X in terms of good Y fell.
c. The absolute price of good X rose, and the absolute price of good Y fell.
d. The absolute price of both goods rose, with the price of good X rising by the higher percentage.
Suppose the short-run supply curve is a straight line of slope +1 that intersects the origin. The long-run supply curve will be
A) horizontal. B) steeper. C) shallower. D) vertical.
A safety report is released that contends that sport utility vehicles are less prone to roll over during crashes than was previously thought. At the same time, the price of steel (used to produce motor vehicles) decreases. The net effect of these two incidents on the market for sport utility vehicles is a(n): a. indeterminate change in price and an increase in equilibrium quantity. b
indeterminate change in price and a decrease in equilibrium quantity. c. decrease in price and an increase in equilibrium quantity. d. increase in price and an increase in equilibrium quantity.
Other things constant, if the demand for a final product is quite elastic, the demand for a resource used to produce the product will tend to be
a. highly inelastic. b. of unitary elasticity. c. a curve sloping upward to the right. d. quite elastic as well.