Suppose the current level of output is 10,000 and the elasticity of output with respect to labor is 0.8. A 10% increase in labor would increase the current level of output to
A. 10,008.
B. 10,080.
C. 18,000.
D. 10,800.
Answer: B
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If a union and a firm cannot reach an agreement on the terms of employment, then the union can organize a withdrawal of labor from the firm, called a strike
a. True b. False Indicate whether the statement is true or false
How is net national product (NNP) calculated?
a. Saving is subtracted from the total income of a nation's citizens. b. Saving is added to the total income of a nation's citizens c. Depreciation losses are subtracted from the total income of a nation's citizens. d. Depreciation losses are added to the total income of a nation's citizens.
Individuals
A. are too small to matter in macroeconomic decision making. B. need to participate in a democracy. C. make up the government. D. are too small to matter in macroeconomic decision making and need to participate in a democracy. E. need to participate in a democracy and make up the government.
Which of the following is a possible disadvantage of a tournament?
A. The outcome of a tournament may appear to be random. B. Workers will stop providing effort as soon as they believe they have no chance to win the prize. C. Workers may collude to share the prize in order to provide lower levels of effort. D. Competitors have little incentive to help one another (and they may even sabotage each other's work). E. All of the above are possible disadvantages of a tournament.