What does it mean when economists say that labor and capital are complementary inputs?
What will be an ideal response?
Additional capital increases the productivity of labor. Likewise, capital is of very little use without labor to operate it.
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The labor force typically grows faster in developing countries than in industrial ones because mortality rates are higher in low-income countries
a. True b. False Indicate whether the statement is true or false
Which of the following is the basic economic policy function of the Federal Reserve Banks?
A. Holding the deposits or reserves of commercial banks. B. Acting as fiscal agents for the federal government. C. Controlling the supply of money. D. The collection or clearing of checks among commercial banks.
When a second firm enters a monopolist's market,
A. the market price will rise. B. the quantity produced by the first firm will decrease. C. the first firm's profits increase. D. All of these will occur.
The additional revenue obtained by a firm when it hires an additional worker, holding other inputs constant, is
A) the marginal physical product of labor. B) the marginal revenue product of labor. C) the marginal cost of labor. D) equal to total revenue divided by the number of workers.