An increase in the marginal factor cost of labor will
A) lead to an increase in the quantity demanded of labor.
B) induce a firm to hire fewer workers.
C) lead to an increase in the value of an additional worker.
D) cause the value of the marginal product of labor to increase.
Answer: B
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Which of the following statements is true?
A) Arithmetic or geometric growth rates gives similar answers for long periods. B) Using either arithmetic or geometric average to compute average growth rates gives similar answers for short periods. C) Geometric average of growth rate ignores the exponential nature of growth. D) Arithmetic calculation of growth rate considers the exponential nature of growth.
In the long-run, a firm in monopolistic competition produces at an output level where
A) P > ATC and MR = MC. B) P > ATC and MR > MC. C) P = ATC and MR = MC. D) P = ATC and MR > MC. E) P = ATC and MC = ATC.
The demand curve for labor is the
A) marginal factor cost curve for labor. B) marginal physical product curve for labor. C) marginal physical product curve for labor times the wage rate. D) marginal revenue product curve for labor.
If the Fed wants to lower the money supply
A) it should lower the discount rate. B) it should buy bonds. C) it should lower the reserve requirement. D) it should sell bonds.