If sewing machines are considered to be a complement to labor in the production of garments, then an increase in the price of sewing machines will cause
A. the demand curve for labor to shift to the right.
B. the demand curve for labor to shift to the left.
C. a movement along the demand curve for labor.
D. nothing to happen to the demand curve for labor.
B. the demand curve for labor to shift to the left.
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The Cost-Benefit Principle indicates that an action should be taken if, and only if:
A. its costs are small. B. its benefits are a result of its costs. C. its benefits exceed its costs. D. its benefits are positive.
Which statement is false?
A. Under the United States' economic system, most of the important decisions are made in the market place. B. In the United States' economy the price mechanism determines the answers to the United States' three basic questions-what, how, and for whom. C. Most economists would agree that the price system leads to a very efficient allocation of resources. D. None of these statements are false.
Gross domestic product is a monetary measure of
A. total consumption in the economy. B. the total value of all final goods and services. C. total industrial output. D. the total value of all foreign sales and purchases.
If price is greater than average variable cost, a profit maximizing firm will always
A. where Total Revenue is maximized. B. produce where Average Total Cost is minimized. C. produce where Marginal Cost equals Marginal Revenue. D. produce where Marginal Cost is minimized.