A firm's isocost line shifts parallel inward from the original isocost line as its
A. total cost for capital and labor decreases.
B. total cost for capital decreases and its total cost for labor increases.
C. total cost for capital and labor increases.
D. total cost for capital increases and its total cost for labor decreases.
Answer: A
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Consider the case of labor outsourcing and labor migration in tradeable goods markets with no barriers to trade.
A. In each country, labor outsourcing will result in the same wage changes as labor migration. B. In each country, labor outsourcing will result in the same employment level changes as labor migration. C. In each country, labor outsourcing will result in the same change in the demand for local public schools as labor migration. D. Both (a) and (b) E. Both (b) and (c) F. Both (a) and (c) G. All of the above. H. None of the above.
If a brewery wants to raise funds to purchase a new fermenting vat, it does so in the
A) factor market. B) output market. C) product market. D) alcoholic beverages market.
How does optimization in levels differ from optimization in differences? Assume that the city council has to choose one among the following three alternatives: setting up a school, setting up a hospital, and setting up a playground
The estimates of expected cost and benefit of all three projects are shown in the following table. How does the city council arrive at the optimal choice if both the techniques of optimization are implemented? Do the results vary? Project Cost ($) Benefit ($) Playground 15,000 30,000 School 20,000 50,000 Hospital 50,000 75,000
Refer to the figure above. What is the equilibrium employment and wage rate after the demand curve shifts to LD2?
A) 20 units of labor and $35 B) 5 units of labor and $15 C) 15 units of labor and $20 D) 10 units of labor and $10