Assume that the price of labor and capital have remained the same, but that the average educational level of workers has increased and therefore the productivity of labor has increased. This would lead a firm to
A. not change its production technology, but to produce fewer units of output.
B. use a more labor-intensive technology.
C. use only labor to produce the product.
D. use a more capital-intensive production technology.
Answer: B
You might also like to view...
Variable inflation rates may be more costly socially than low but predictable rates of inflation.
Answer the following statement true (T) or false (F)
Which of the following do economists generally agree is an unacceptable method of bringing aggregate demand and supply into equilibrium?
A. Increases in the supply of money B. Inflation C. Deflation D. Increases in the government deficit
The rule of 72 implies that a country with a growth rate of 2 percent:
A. will double its income in about 7 years. B. will double its income in about 36 years. C. will double its income in about 50 years. D. will never double its income.
Pure economic rent involves situations where
A) the supply curve is perfectly inelastic. B) the supply curve is perfectly elastic. C) the uses to which a resource can be used can be varied but the quality of the resource cannot be varied. D) the quality of a resource can be varied but the price cannot be varied.