Why is the demand for labor referred to as a derived demand?
A firm's demand for labor is in relationship to the demand for the product the firm is selling. As the demand for output changes, so will the demand for labor input.
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What are some of the ways that real-world airlines price discriminate?
What will be an ideal response?
Economists caution that conventional statistics used to estimate the extent of poverty in the United States fail to account for benefits people receive that, if considered, would reduce the amount of poverty
Which of the following is an example of these benefits? A) The federal minimum wage forces employers to pay workers with low skills an efficiency wage. B) Individuals with low incomes receive non-cash benefits such as free school lunches and food stamps. C) Individuals can use tax credits and the personal exemption to reduce their taxable incomes. This reduces what they owe the government and increases their disposable incomes. D) The federal income tax system is progressive. As a result, the poor have higher after-tax incomes than they would have if the income tax system was proportional or regressive.
During the worst year of the Great Depression, according to the official statistics, about what percentage of the labor force was unemployed?
(a) 10% (b) 15% (c) 25% (d) 35%
If both the price level and nominal incomes change by the same percentage: a. real GDP will remain constant
b. the aggregate supply curve will be upward-sloping. c. profit margins will change in real terms. d. the long-run aggregate supply curve will be horizontal. e. both a and d.