Explain the difference between a movement along a given output-per-laborer (or labor productivity) curve and a shift to a new output-per-laborer curve
For a given supply of workers, the only thing that leads to a movement along a given output-per-laborer
curve is capital deepening (an increase in the capital stock). Shifts to a new output-per-laborer curve result
from a change in technology or a change in the quality or quantity of the labor force.
You might also like to view...
Which of the following would be considered open-access common property?
A) a library B) the world wide web C) a company gym D) broadcast television
In economics, the term investment refers to:
a. the cost of employing human capital. b. expenditure on expense accounts of employees. c. firms' expenditure on salaries and rent. d. business spending for acquiring capital goods. e. the expenses on the purchase of stocks of a corporation.
Graphically, the area that represents the difference between the maximum price consumers were willing to pay for a good and the market price is called
a. consumer surplus. b. producer surplus. c. marginal cost. d. triangular arbitrage.
Which of the following statements is true about bonds?
A) Buyers of newly issued bonds are borrowers. B) When the government and large corporations want to borrow money they buy bonds. C) A bond owner must hold a bond until it matures. D) The interest rate on a bond is inversely related to its price.