When the marginal productivity of labor decreases, the demand curve for labor in a perfectly competitive market
A) does not change.
B) becomes flatter.
C) shifts to the right.
D) shifts to the left.
D
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The demand for automobiles fell when gasoline prices increased. Which of the following is likely to happen in this case, assuming all else equal?
A) The labor demand curve of automobile companies will shift to the left. B) The labor demand curve of automobile companies will shift to the right. C) The supply of labor to the automobile industry will decrease. D) The supply of labor to the automobile industry will increase.
When consumers or businessmen stop collecting information to make decisions at the point where marginal cost of data collection equals the marginal utility of the data, economists would call the decisions based on existing data
a. perfect decisions. b. optimally imperfect decisions. c. joint decisions. d. rent seeking.
Events of the 1970s and early 1980s showed that
A) the Phillips curve presents policymakers with a stable menu of choices. B) cycles of unemployment and inflation rates appear to have gravitated around a 6 percent unemployment rate. C) lower inflation rates are consistently accompanied by higher unemployment rates. D) a tradeoff between inflation and unemployment may not always exist. E) a and c
Some economists believe that the market will not solve all problems. They are referring to:
A. optional policy. B. market incentive plans. C. the need to balance the good of the individual with the good of society as a whole. D. market failure.