Suppose that a toxic waste spill renders half of the land in New Jersey uninhabitable. Assuming that land and labor are complements in the production function, what would happen to the wages earned by workers and rents earned by landowners?
a. Both wages and rents would increase.
b. Both wages and rents would decrease.
c. Wages would increase, and rents would decrease.
d. Wages would decrease, and rents would increase.
d
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Explain why a minimum wage creates an inefficient allocation of labor resources
What will be an ideal response?
Angelo's Pizza is famous for its secret tomato sauce. The managers of Angelo's Pizza are more likely to produce all of their inputs rather than buy them due to ________.
A) communication costs B) transportation costs C) economies of scale D) trade secrets
An increase in wages in the public sector is always accompanied by an increase in labor productivity
a. True b. False Indicate whether the statement is true or false
If the U.S. dollar becomes weaker in international markets, the net effects will include
A. an increase in both short run aggregate supply (SRAS) and aggregate demand. B. an increase in short-run aggregate supply (SRAS) and a decrease in aggregate demand. C. a decrease in short-run aggregate supply (SRAS) and an increase in aggregate demand. D. a decrease in both short run aggregate supply (SRAS) and aggregate demand.