The marginal product of labor and the price of the output produced determine the:
A. worker mobility
B. the demand for labor
C. the price of labor
D. the supply of labor
Answer: B
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Price leadership
a. is a form of explicit collusion b. works only when firms have dominant strategies c. is a form of tacit collusion d. reduces long-run economic profit for individual firms e. rarely is effective in setting prices in oligopolistic markets
The addition to total output when one more unit of capital is added is called the marginal revenue product of capital
Indicate whether the statement is true or false
Which of the following does purchasing-power parity imply?
a. The purchasing power of the dollar is the same in the U.S. as in foreign countries. b. The price of domestic goods relative to foreign goods cannot change. c. The nominal exchange rate is the ratio of U.S. prices to foreign prices. d. All of the above are correct.
The table below shows the units of land and labor required to produce a unit of bread and cheese respectively in Country X. Identify the correct statement. 1 Unit of Bread1 Unit of CheeseLabor Input5 units20 unitsLand Input4 units10 units
A. Production of bread is relatively labor-intensive in the country. B. The opportunity cost of producing an extra unit of bread is four units of cheese. C. The domestic price ratio in the country is two units of bread per unit of cheese. D. Production of bread is relatively land-intensive in the country.