A decrease in the price of the output will decrease the firm's demand for labor
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Isabel can work as a rodeo clown, where the probability of being killed in a work-related accident is 5/10,000, or she can earn work as a sword swallower, where the probability of being killed in a work-related accident is 3/10,000
Using the compensating differential approach, the value of Isabel's life is $5 million. How much more per year will working as a rodeo clown pay than working as a sword swallower?
Loss aversion refers to the idea that:
A) people generally tend to avoid risky activities. B) people are more prone to making losses than gains in day-to-day transactions. C) people psychologically weight a loss more heavily than they psychologically weight a gain. D) people are unwilling to undertake expenditures that reduce the probability of future losses.
Country A and country B both increase their capital stock by one unit. Output in country A increases by 12 while output in country B increases by 15 . Other things the same, diminishing returns implies that country A is
a. richer than Country B. If Country A adds another unit of capital, output will increase by more than 12 units. b. richer than Country B. If Country A adds another unit of capital, output will increase by less than 12 units. c. poorer than Country B. If Country A adds another unit of capital, output will increase by more than 12 units. d. poorer than Country B. If Country A adds another unit of capital, output will increase by less than 12 units.
A country is most likely to have a comparative advantage in the production of cars if:
A. its citizens prefer driving cars to other forms of transportation. B. it imports most of the raw materials necessary to produce cars. C. it has strict environmental protection laws governing automobile emissions. D. it has a relative abundance in the natural resources needed to produce cars.