Changing the labels on isoquants without changing the shapes of the isoquants implies no change in the underlying technology so long as the ordering of isoquants is preserved.
Answer the following statement true (T) or false (F)
False
Rationale: This statement is true for consumer indifference maps where utility labels have no inherent meaning -- but in isoquant maps, the labels represent measurable output units.
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The supply of labor curve is
A) vertical at potential GDP. B) upward sloping. C) downward sloping. D) horizontal at the equilibrium wage rate.
Refer to Table 1-2. What is Julius's marginal benefit if he decides to stay open for three hours instead of two hours?
A) $15 B) $25 C) $65 D) $80
The more firms there are in a market, the:
A. larger will be the price effect of one firm's output decision. B. smaller will be the price effect of one firm's output decision. C. more collusion is likely to happen. D. None of these statements is true.
If the government passes legislation shortening the workweek from 40 hours to 35 hours, with overtime pay required for more than 35 hours, which of the following would occur?
A. The demand for labor hours would increase. B. The supply of labor would decrease. C. Employers would face lower labor costs because they would save five hours a week of wages. D. Employers would face higher labor costs because they would have to pay overtime or train more workers to get the same quantity of work done.