A firm purchases less capital equipment. We would expect to observe
A) a rightward shift in the supply curve of labor to this firm.
B) a decrease in the supply of labor for this firm.
C) a decrease in the demand for labor by this firm.
D) a decrease in the wage rate paid for labor by this firm.
Answer: C
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For a nation to have ________ in producing a good it must have a lower opportunity cost of producing that good than the other country
A) a comparative advantage B) an autarky advantage C) an absolute advantage D) both a comparative advantage and an absolute advantage
Dynamic tax analysis is based on the recognition that as tax rates are increased
A) tax revenue collections will eventually decline. B) tax revenue collections will continually increase. C) tax revenue collections will change at the same rate as the tax rates. D) tax revenue collections will increase at a faster rate than the tax rate change.
According to the theory of rational expectations, the economy always remains at the natural rate of unemployment, irrespective of policy changes
a. True b. False Indicate whether the statement is true or false
A disadvantage of the Earned Income Tax Credit (EITC) program is that it does not help alleviate poverty due to unemployment, sickness, or other inability to work
a. True b. False Indicate whether the statement is true or false