If skilled labor is three times the cost of unskilled labor, a profit-maximizing firm will vary the quantity of each type of labor until the
a. marginal product of each is the same.
b. amount of unskilled labor used is three times the quantity of skilled labor used.
c. amount of unskilled labor used is one-third the quantity of skilled labor used.
d. marginal product of unskilled labor is one-third that of skilled labor.
D
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Answer the following statements true (T) or false (F)
1. Whether a tax is shifted forward or backward depends on the price elasticizes of demand and supply. 2. The effect of a tax is the same thing as the incidence of the tax. 3. A direct tax is one that cannot be shifted. 4. A flat tax is a form of sales tax. 5. Value-added tax rates in Europe usually range between 5 and 10 percent.
Workers who pursue an education directly increase their
A) financial capital. B) physical capital. C) human capital. D) saving.
Currency crises may result from
A) central bank balance sheets with higher liabilities than assets. B) political upheaval leading to lowering exports. C) a reconfiguration of central bank balance sheets. D) speculative attacks on the currency or central banks purchasing excessive amounts of government bonds. E) depreciation of foreign reserves.
The White House's deficit commission has proposed several ways for the government to reduce the federal budget deficit, including freezing salaries of federal workers
Other things equal, freezing salaries of federal workers would tend to ________ the opportunity cost of leisure and ________ the supply of labor. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease