Which of the following decreases in labor demand is due to a change in product demand?
A. An increase in the price of steel increases the cost of producing cars and trucks, thus decreasing the demand for automobile workers.
B. A decline in productivity in retailing decreases the demand for retail sales workers.
C. The widespread availability of news on the web reduces the demand for newspaper workers.
D. An increase in the price of paper increases the cost of making books, thus decreasing the demand for bookbinders.
Answer: C
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If the demand effect dominates during a currency depreciation, then
A. real GDP should fall. B. real GDP should increase. C. the price level should fall. D. net exports should decrease.
Exhibit 36-1 Bond FaceValueof Bond Price ofthe Bond Annual CouponPayment A $1,000 $850 $25 B $1,000 $950 $41 C $1,000 $1,100 $52 D $1,000 $1,100 $32 E $1,000 $1,000 $50 Refer to Exhibit 36-1. The coupon rate for bond B is
A. 0.04 percent. B. 4.3 percent. C. 4.1 percent. D. 11 percent.
If a product has a short-run elasticity of supply equal to zero, then an increase in the demand for the product will:
A. increase price and leave quantity sold unchanged. B. increase price and reduce the quantity sold to zero. C. have no effect on price or quantity sold. D. leave the price unchanged and reduce the quantity sold.
In the product market, changes in technology affect the marginal ________ of a unit of output. In the labor market, changes in technology affect the marginal ________ of a unit of labor input.
A. revenue product; cost B. cost; revenue product C. cost; cost D. revenue; revenue