An economy with better technology is likely to:
A) achieve higher productivity. B) have lower levels of human capital.
C) have less capital stock. D) use more labor than capital.
A
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If new capital increases labor productivity, the supply of labor ________ and the demand for labor ________
A) stays the same; increases B) increases; increases C) increases; decreases D) decreases; stays the same
Which of the following is true? a. Average cost pricing reduces the incentives for a monopolist to find ways to reduce its costs
b. With natural monopoly, if regulators allow the firm to earn profits, there will be a welfare cost from producing too little of the good. c. Government regulation of monopolies aims to achieve the efficiency of large-scale production, without permitting the producers to charge monopoly prices. d. All of the above are true.
Let L represent the number of workers hired by a firm, and let Q represent that firm's quantity of output. Assume two points on the firm's production function are (L = 12, Q = 122) and (L = 13, Q = 130). Then the marginal product of the 13th worker is
a. 8 units of output.
b. 10 units of output.
c. 122 units of output.
d. 132 units of output.
The aggregate supply curve is likely to be relatively flat in the short run
A. but relatively steep in the long run. B. and relatively flat in the long run. C. but vertical in the long run. D. None of the above is correct.