If the marginal productivity of labor decreases, then
A) the quantity of labor demanded at every possible wage rate will be less.
B) the quantity of labor demanded at every possible wage rate will be higher.
C) the quantity of labor demanded will not be affected.
D) the demand curve for labor will shift upward and to the right.
Answer: A
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In the long run, firms in a competitive market
A) shut down because profit goes to zero. B) lose money. C) are not profit maximizing. D) earn zero economic profit.
In the above figure, what is the price the firm receives if the output is 8?
A) $10 B) $2 C) $7 D) $8
Bans or quotas that limit the use of common resources are straightforward public-policy approaches to solving the problem of overuse if:
A. the community agrees to aid in its enforcement. B. the community affected participates in setting the punishments for breaking the policy. C. countries have the resources to enforce them. D. None of these statements is true.
Two studies published in the New England Journal of Medicine link the risk of breast cancer to alcohol consumption. Young women who have nine drinks per week were reportedly 150 percent more likely to develop breast cancer. According to economic analysis, how would this information affect the market for alcohol?
a. Demand will increase, placing upward pressure on price. b. Supply will decrease, placing downward pressure on price. c. Demand will decrease, placing downward pressure on price. d. Supply will increase, placing upward pressure on price.