When will the scale effect of a wage increase cause a fall in the amount of labor employed?
a. Always.
b. When labor is not a regressive factor.
c. When labor and capital are substitutes in production.
d. When labor and capital are complements in production.
b. When labor is not a regressive factor.
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If Bertrand price competitors incur recurring fixed costs, it will still be a Nash equilibrium for price to equal marginal cost.
Answer the following statement true (T) or false (F)
Refer to Figure 16-7. Given that the economy has moved from A to B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?
A) decrease interest rates B) increase government spending C) contractionary fiscal policy D) increase taxes
The see-through office building, and the boarded-up factory outlet mall may be attributed to
A) changing conditions which no longer justify the project for which the buildings were produced. B) deregulation of S & Ls. C) extreme business optimism. D) all of the above.
The term "economic freedom" means
A) the right to own private property. B) the right to trade goods and services. C) the right to own financial assets. D) all the above.