All else constant, an increase in the price of labor would cause the total amount of output that can be produced with a fixed amount of spending to ________. This would result in a movement to a ________ isoquant
A) increase; lower
B) increase; higher
C) decrease; lower
D) decrease; higher
C
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In the Cobb-Douglas production function, the index of the overall level of efficiency of transforming capital and labor into real GDP is called
A) total factor productivity. B) allocative efficiency. C) the marginal efficiency index. D) the transformation allocation of inputs.
In the graph of supply and demand in the market for labor:
A. individuals make up the demand curve. B. the equilibrium price of labor is generally denoted as L*. C. firms provide the demand. D. equilibrium is rarely achieved.
Regulations are sometimes used to "correct" the failures of a market mechanism
a. True b. False Indicate whether the statement is true or false
If consumption is $10,000 when income is $10,000, and consumption increases to $11,000 when income increases to $12,000, the MPS is
A. 0.10. B. 0.25. C. 0.50. D. 0.90.