An increase in the marginal factor cost of labor will
A. lead to an increase in the value of an additional worker.
B. cause the value of the marginal product of labor to increase.
C. lead to an increase in the quantity demanded of labor.
D. induce a firm to hire fewer workers.
Answer: D
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Under which of the following circumstances would the government be running a deficit?
A) G = $7 trillion T = $10 trillion TR = $3 trillion B) G = $7 trillion T = $7 trillion TR = $0 C) G = $5 trillion T = $5 trillion TR = $1 trillion D) G = $5 trillion T = $7 trillion TR = $1 trillion
Refer to Figure 2-11. What is the opportunity cost of producing 1 bolt of cotton in Pakistan?
A) 3/8 of a pound of cashews B) 5/8 of a pound of cashews C) 1 3/5 pounds of cashews D) 150 pounds of cashews
Holding other factors constant, if a larger proportion of the population enters the labor force as a result of a growing social acceptance of women working, then the real wages of workers will ________ and employment of workers will ________.
A. decrease; increase B. increase; increase C. increase; decrease D. decrease; not change
Exhibit 2 shows that before trade, the producer surplus equaled ______; after trade, the producer surplus ______.
a. a + b + c; expands to a + b + c + d
b. d; expands to b + c + d
c. e + f; expands to b + c + d + e + f
d. a + b + c; expands to a + b + c + e + f