Your boss wants to know if you should lay off any workers. You answer that you should lay off workers if the
A) marginal revenue product of labor is greater than the nominal wage rate.
B) marginal product of labor is greater than or equal to the real wage rate.
C) marginal revenue product of labor is equal to the nominal wage rate.
D) marginal product of labor is less than the real wage rate.
D
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A positive income elasticity of demand coefficient indicates that:
A. two products are complementary goods. B. two products are substitute goods. C. a product is a normal good. D. a product is an inferior good.
If the growth rate of the labor force is 2 percent and the growth rate of productivity is 1.5 percent, the growth rate of total output is
A. 3.5 percent. B. 1.33 percent. C. 0.75 percent. D. 0.5 percent.
A highly oligopolized industry would have a ______ Herfindahl-Hirschman Index and a ______ concentration ratio.
A. high; high B. low; low C. high; low D. low; high
The 1968 prediction of Paul Ehrlich proved to be wrong because population growth:
A. Slowed dramatically as standards of living decreased B. Slowed dramatically as standards of living increased C. Rose dramatically as standards of living decreased D. Rose dramatically as standards of living increased