The marginal product of a country's workers falls during winters due to excessive cold. Which of the following is likely to happen in this case, assuming all else equal?

A) The country's labor demand curve will shift to the right in winter.
B) There will be an upward movement along the labor demand curve.
C) The country's labor demand curve will shift to the left in winter.
D) There will be a downward movement along the labor demand curve.


C

Economics

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Compared to the U.S. production function, the European production function is

A) lower. B) the same. C) higher. D) lower than the U.S. production function at low levels of employment and higher than the U.S. production function at high levels of employment. E) higher than the U.S. production function at low levels of employment and lower than the U.S. production function at high levels of employment.

Economics

If the present value equation used to calculate the price of a stock you are considering buying is "[$12 / (0.05 - 0.02)], which of the following is correct, assuming that dividends will grow at a constant rate?

A) The dividend is $12 per share, the dividend growth rate is 2 percent, and the interest rate is 5 percent. B) The stock price is $12, the dividend growth rate is 5 percent, and the interest rate is 3 percent. C) The dividend is $12 per share, the dividend growth rate is 5 percent, and the interest rate is 2 percent. D) The stock price is $12, the dividend growth rate is 2 percent, and the interest rate is 5 percent.

Economics

A borrower who takes out a loan usually has better information about the potential returns and risk of the investment projects he plans to undertake than does the lender. This inequality of information is called

A) moral hazard. B) asymmetric information. C) noncollateralized risk. D) adverse selection.

Economics

You have a bond that will pay you one hundred dollars one year from today. If the prevailing interest rate is r, the bond is currently worth

a. 100/r b. 100r c. 100/(1 + r) d. 100

Economics