Which of the following can shift the labor demand curve to the right?
A. decrease in product price
B. increase in wages
C. increase in productivity
D. decrease in the marginal product
Answer: C
You might also like to view...
Suppose you and I are the only two individuals in the world and we both face individual risk in the following way: I get more consumption in state 1 than in state 2 while you get more consumption in state 2 than in state 1. a. Suppose we are both risk averse and our tastes are state-independent. Will we fully insure one another in a competitive equilibrium?
b. How does your answer change if there is aggregate risk in the sense that overall consumption is higher in state 2 than in state 1? c. Is it possible that we insure each other if our tastes are risk neutral and state-independent? If so, are the terms actuarily fair? d. Suppose that there is no aggregate risk but our tastes are state-dependent. How might we fully insure each other if our beliefs about the probability of each state differ? What will be an ideal response?
The greater the interest rate
A) the greater the present value of a sum to be received a year in the future. B) the greater the opportunity cost of another dollar of current consumption. C) the more a dollar invested today will be worth a year from now. D) the lower the discount rate.
In the long run
A. all costs are variable. B. total variable cost equals total fixed cost. C. total fixed cost is greater than total variable cost. D. all costs are fixed.
The ________ effect suggests that speculations can sometimes be destabilizing as the actions of international investors move the exchange rate away from the long-run equilibrium value consistent with fundamental economic influences.
A. overshooting B. arbitrage C. exchange rate D. bandwagon