In the above diagram, total product will be at a maximum at:
A. Q2 units of labor
B. Q3 units of labor
C. Q1 units of labor
D. some point that cannot be determined with the above information.
Answer: B
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Which of the following is likely to cause an upward movement along the labor supply curve assuming all else equal?
A) An increase in the labor population B) A rise in the wage rate. C) A fall in the wage rate. D) A decrease in the labor population
If the social benefit is greater than the private benefit in a particular market, then the private equilibrium will be at a quantity:
A. greater than the socially optimal level. B. equal to the socially optimal level. C. less than the socially optimal level. D. greater than or less than the socially optimum level, depending on the size of the external costs.
In a closed economy, income equals:
A. consumption plus net exports. B. consumption plus savings. C. consumption minus savings. D. savings plus investment.
When government provides generous unemployment benefits, unemployed workers have lesser incentives to look for jobs
a. True b. False Indicate whether the statement is true or false