What are the influences on the demand for labor?
What will be an ideal response?
Factors that influence the demand for labor are the wage rate, the price of the firm's output, the prices of other factors of production, and technology. A lower wage rate increases the quantity of labor demanded. A rise in the price of a substitute for labor or a fall in the price of a complement for labor increases the demand for labor. A new technology or new capital that increases the marginal product of labor increases the demand for labor.
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An increase in consumer spending caused by an increase in consumer confidence would cause
A) the aggregate demand curve to shift up and to the right. B) the aggregate demand curve to shift down and to the left. C) a movement down and to the right along the aggregate demand curve. D) a movement up and to the left along the aggregate demand curve.
Food stamps _____
a. do little to increase demand for agricultural products b. make certain low-income individuals eat healthy foods c. increase demand for agricultural products d. help fight obesity
A government mandated price increase for doodads will: a. decrease the quantity of doodads supplied but increase the quantity of doodads demanded. b. increase the quantity of doodads supplied but decrease the quantity of doodads demanded. c. increase the demand for doodads and decrease the supply of doodads
d. decrease the demand for doodads and increase the supply of doodads.
Various new cars are sold with sensors that automatically turn on the headlights at night or in low light conditions. Would these sensors create a positive externality or a negative externality? How?