An increase in the productivity of labor induces
A) an increase in the demand for labor.
B) an increase in the cost of labor.
C) a firm to hire fewer workers since fewer workers are needed with the increase in productivity.
D) a firm to offer a higher wage for workers since the workers are now more productive.
A
You might also like to view...
Explain the objective of the benevolent social planner
What will be an ideal response?
Refer to Table 2-15. Which of the following statements is true?
A) Jack has a comparative advantage in lawn mowing and George in garden cultivating. B) Jack has a comparative advantage in garden cultivating and George in lawn mowing. C) George has a comparative advantage in both tasks. D) Jack has a comparative advantage in both tasks.
"No central bank can be indifferent to its currency's value in the foreign exchange market." Discuss
What will be an ideal response?
National income:
a. represents total wages and salaries in an economy. b. equals GDP minus indirect business taxes. c. equals GDP minus depreciation. d. equals C + I + G + (X ? M). e. is the value of existing capital stock used up in making goods.