Laborland has 1 million workers. Suppose 50,000 workers migrate from a neighboring country to join Laborland's work force. Which of the following will happen in this case if Laborland's capital stock remains unchanged?
A) The country's income per worker will increase.
B) The total efficiency units of labor in the economy will decrease.
C) The relationship between output and capital stock becomes negative.
D) The marginal contribution of labor to Laborland's output will fall.
D
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The quantity theory of money and prices rests on the assumption that
A) the minimum wage is constant. B) the velocity of money is constant. C) the nominal interest rate is constant. D) the foreign exchange rate is constant.
Financial Innovation More and more of the back office tasks for commodity traders and market makers can be easily automated which lowers the costs of making transactions. What is the effect of these technical changes on the bid-ask spreads between commodity buyers and sellers at commodity exchanges?
Assume labor is the only variable input and that an additional input of labor increases total output from 72 to 78 units. If the product sells for $6 per unit in a purely competitive market, the MRP of this additional worker is:
A. $6. B. $12. C. $36. D. $72.
Which of the following is FALSE?
A. Assuming that the law of diminishing marginal utility holds, the demand curve must be upward sloping. B. A consumer is maximizing total utility when he or she gets the same amount of marginal utility from the last dollar spent on each good purchased. C. As additional units of a good or service are consumed, marginal utility diminishes. D. Utility is want-satisfying power.