The fast-food industry is generally considered to be a constant cost industry in regards to its use of labor as an input. Why?
a. Few people prefer to work in the industry
b. Available labor is in short supply.
c. Firms use a relatively small share of unskilled labor in most cities.
d. The productivity of the workers is relatively low.
c
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The price elasticity of demand is useful because it measures the responsiveness of _____ to changes in _____.
A) taxpayers; demand B) producers; supply C) consumers; price D) consumers; demand E) producers; income
Which of the following is the most accurate definition of a worker's marginal revenue product?
A. The change in the firm's profits as the result of hiring an additional worker. B. The change in the firm's total revenue as the result of hiring an additional worker. C. The change in the firm's output as the result of hiring an additional worker. D. The change in the firm's cost as the result of hiring an additional worker.
The cross elasticity between two goods, X and Y, is positive. From this, we can conclude that goods X and Y are:
A. substitute goods. B. complementary goods. C. unrelated goods. D. inferior goods.
Which of the following is among the policies that the Chinese government has implemented since 2006?
A. Reducing the restrictions on foreign acquisitions of Chinese publicly traded companies. B. Phasing out many of the tax incentives which were initially provided to the foreign firms. C. Emphasizing the quantity of investments of inbound FDI. D. Engaging in "bidding wars" with other countries to attract foreign direct investment (FDI).