An increase in the wage rate will have a greater effect on average costs
a. the larger the proportion labor costs are of total costs and the easier it is to substitute capital for labor.
b. the larger the proportion labor costs are of total costs and the harder it is to substitute capital for labor.
c. the greater is the diminishing marginal product of labor.
d. the greater are returns to scale.
b
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In the United States, the federal minimum wage in early 2016was:
A. $7.25 per hour. B. $6.50 per hour. C. $8.00 per hour. D. $7.73 per hour.
Adverse selection problems in health insurance are reduced by all of the following except: a. requiring physical exams
b. requiring patients to pay higher deductibles. c. insuring entire groups. d. by limiting the period of open enrollment in health insurance plans.
A price ceiling set above the equilibrium price causes quantity demanded to exceed quantity supplied
a. True b. False Indicate whether the statement is true or false
The best description of the economy in the long run comes from which macroeconomic theory?
a) classical b) aggregate demand c) Keynesian d) aggregate supply