The simple immigration model assumes that the capital stock is constant in each country. If this assumption is relaxed, then the:
A. Rise in business income in the high-wage country will increase the return on capital, which will increase the demand for labor
B. Fall in business income in the high-wage country will decrease the return on capital, which will increase the demand for labor
C. Rise in business income in the high-wage country will increase the return on capital, which will decrease the demand for labor
D. Fall in business income in the high-wage country will decrease the return on capital, which will decrease the demand for labor
A. Rise in business income in the high-wage country will increase the return on capital, which will increase the demand for labor
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What factor probably contributes most to economic growth?
A) Money B) Political influence C) Foreign aid and investment D) The exploitation of poor countries by rich countries E) Productive knowledge
The marginal product of labor indicates ________. Therefore the MPL curve is also ________
A) the quantity of labor supplied for a given wage; the equilibrium price of labor B) the quantity of labor demanded for a given wage; the equilibrium price of labor C) the quantity of labor demanded for a given wage; the demand curve of labor D) the quantity of labor supplied for a given wage; the supply curve of labor E) none of the above
The mangers of Happy Campers and Camp with Us are engaged in a strategic interaction in which their interests are aligned, but there is more than one possible equilibrium. All of the following can help the managers determine the equilibrium outcome except which one?
A) an announcement made by either firm regarding their future plans B) the Pareto criterion C) a focal point D) unpredictable strategies
If marginal cost is rising, then average cost must be rising
a. True b. False Indicate whether the statement is true or false