According to the output effect, a decrease in the wage will decrease production costs, so the price of final goods will decrease and the demand for labor will decrease.
Answer the following statement true (T) or false (F)
False
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According to the text, government licensing frequently enables monopoly in
A) agriculture. B) electricity production. C) mining. D) retail sales.
Suppose Larry's Lariats produces lassos, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. The total costs for this company would include:
A. the cost of rope. B. employee's wages. C. the rope-cutting machine. D. All of these expenses would be included in total cost.
An increase in interest rates:
A. decreases aggregate demand, slowing economic activity. B. decreases aggregate demand, increasing economic activity. C. increases aggregate demand, slowing economic activity. D. increases aggregate demand, increasing economic activity
Placing restrictions on business opportunities through government licensing and other controls
(a) is not allowed now and never has been in American history. (b) is not allowed now but was provided for by the Constitution and allowed until the 20th century. (c) is allowed now but was not allowed during the colonial period nor in the decades immediately following the establishment of the new nation. (d) has always been allowed in American history.