Suppose a permanent technological improvement raises labor's marginal productivity. Whether or not workers own capital, we can conclude that
a. the wage rate will rise.
b. employment will fall.
c. the supply of labor will rise.
d. the demand for labor will fall.
a. the wage rate will rise.
You might also like to view...
Cyclical unemployment includes people who become unemployed from
A) normal labor market turnover. B) changes in the seasons. C) changes in international competition. D) technological changes. E) changes in the business cycle.
If a firm in a perfectly competitive industry experiences persistent losses, in the long run it should
A) shut down temporarily and wait for market conditions to change. B) continue to operate if it can raise the demand for its product through advertising and quality improvements. C) exit the industry. D) raise its price to cover average total cost.
The practice of setting price by increasing the average costs of production by some percentage is referred to as:
A) average cost pricing. B) percentage pricing. C) rate-of-return pricing. D) markup pricing.
A professor of economics gets a $100 a month raise. She figures that even with her new monthly salary she will be unable to buy as many goods and services as she could 12 months ago
a. Her real and nominal salary have risen. b. Her real and nominal salary have fallen. c. Her real salary has risen and her nominal salary has fallen. d. Her real salary has fallen and her nominal salary has risen.