The demand for labor of a perfectly competitive producer:
a. is perfectly elastic at the going wage rate
b. is downward sloping because prices fall when the producer increases output.
c. is downward sloping because of diminishing marginal productivity.
d. is downward sloping because prices fall when the producer increases output and because of diminishing marginal productivity.
c
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Economists assume that rational behavior is useful in explaining choices people make
A) because irrational people do not make economic choices. B) because individuals act rationally all the time in all circumstances. C) even though people rarely, if ever, behave in a rational manner. D) even though people may not behave rationally all the time.
Changes in the natural rate of unemployment are related to changes in the composition of the labor force and to the changes in the productivity of the economy over time
Indicate whether the statement is true or false
The Malthusian model predicts that
A) population will keep increasing. B) the standard of living will keep increasing. C) health improvements increase the standard of living. D) population control improves the standard of living.
A firm that engages in efficient production
A) cannot produce the same output with fewer inputs. B) could produce the same output with fewer inputs if it wanted to. C) is not interested in profit maximization. D) uses old technology to minimize costs.