In the one-input model, a decrease in output price will always cause labor demand to shift in.
Answer the following statement true (T) or false (F)
True
Rationale: The labor demand curve is a portion of the marginal revenue product curve -- which is price times the marginal product of labor. A drop in price will therefore cause a downward (or inward) shift in the marginal revenue product curve and thus in the labor demand curve.
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Which aspect of undeveloped labor markets causes unemployment in undeveloped labor markets to be misunderstood?
a. higher inflation rates b. greater government control c. barter and trade economies d. agricultural economies
Strategic bargaining:
A. may reduce the number of trade restrictions if it is successful. B. may increase the number of trade restrictions if it is successful. C. always increases the number of trade restrictions. D. always reduces the number of trade restrictions.
In recent economic history, the U.S. federal budget was in surplus from
A) 2001 through 2005. B) 1998 through 2001. C) 1990 through 1997. D) 1980 through 1989.
In macroeconomic models, prices are assumed to be completely inflexible in:
A. The very short run only B. The short run and remains so over time C. The very long run D. Situations when the changes in demand look to be permanent