If a firm decreases its capital stock, real wages will likely ________ and the equilibrium quantity of labor will likely ________
A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease
C
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If an excise tax is placed on a product that has a perfectly inelastic demand, then:
A. the entire tax will be paid by the consumer. B. the entire tax will be paid by the producer. C. the consumer and producer will each pay a share of the tax. D. the incidence of the tax cannot be determined unless we know the coefficient of price elasticity of supply.
In the basic aggregate expenditures model, a decrease in autonomous expenditure
A. increases equilibrium output. B. reduces equilibrium output. C. reduces potential output. D. increases potential output.
An ________ distribution of income would yield a ________ curve that was a 45-degree line between 0 and 100%.
A. equal; Lorenz B. equal; Gini C. unequal; Gini D. unequal; Lorenz
National income
A. will always equal personal income. B. is always less than personal income. C. is always greater than personal income. D. may be greater than or less than personal income.