If technological developments increase the marginal product of labor, then the:
A. demand for labor will decrease.
B. demand for labor will increase.
C. supply of labor will increase.
D. the equilibrium wage rate will decrease.
Answer: B
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Refer to Table below. Given the consumption schedule in the table above, the marginal propensity to save is
Consumption (dollars) $1,200 2,100 3,000 Disposable Income (dollars) $3,000 4,000 5,000 a. 0.1. b. 0.4. c. 0.7. d. 0.9.
Suppose the price of a can was $5.10. In this case, to maximize its profit, the firm illustrated in the figure above would
A) decrease its production and would make an economic profit. B) not change its production and would make zero economic profit. C) not change its production and would make an economic profit. D) decrease its production and would incur an economic loss. E) not change its production and would incur an economic loss.
Inferior goods are those for which demand increases as
A) the price of a substitute falls. B) the price of a substitute rises. C) income decreases. D) income increases.
All of the following lead to a difference in income EXCEPT
A) sales tax. B) discrimination. C) the age-earnings cycle. D) marginal productivity.