Explain what is meant when it is said that the demand for labor is a derived demand
The demand for labor is derived from the demand for the good or service that labor produces. The demand curve for labor is the downward-sloping portion of the marginal revenue product curve of labor, which is the product of marginal physical product of labor and the price of the output. If the price of the output increases, the demand curve for labor in turn will shift outward.
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Which of the following government entities relies most heavily on sales taxes?
A. Local government B. State government C. Federal government D. The Social Security Administration
Assuming the demand curve is more elastic (flatter) than the supply curve, which of the following is true?
a. The full tax is always passed to the consumer no matter how flat (elastic) the demand curve is. b. The full tax is always passed to the seller no matter how flat (elastic) the demand curve is. c. The smaller the portion of a sales tax that is passed to the consumer. d. It does not make any difference how flat (elastic) the demand curve is; the tax is always split evenly between buyer and seller.
Which of the following about fiscal policy is true?
a. The expansionary fiscal policy of the 1980s stimulated aggregate demand and led to high rates of inflation during the latter half of the decade. b. The restrictive fiscal policy of the 1990s led to sluggish economic growth during the decade. c. Even though fiscal policy was highly expansionary during the 1980s, the inflation rate fell and remained at relatively low levels. d. Even though fiscal policy was restrictive during the 1990s, the real growth rate of the economy was strong. e. Both c and d are true.
An economy has no imports and no taxes. The marginal propensity to save is 0.4. A? ______ increase in autonomous expenditure increases equilibrium expenditure by? $60 billion. The multiplier is? ______.
A. ?$38 ?billion; 24 B. ?$24 ?billion; 2.50 C. ?$96 ?billion; 0.63 D. ?$150 ?billion; 2.50