A firm's demand curve for labor slopes downwards because
A) firms supply less labor as the wage rate rises.
B) of rising marginal product.
C) workers supply less labor services as the wage rate falls.
D) of the law of diminishing marginal returns.
D
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If total output is calculated by adding up the market value of goods and services produced, then more expensive items:
A. receive a greater weight than cheaper items. B. receive the same weight as cheaper items. C. receive a smaller weight than cheaper items. D. are double counted.
In the real business cycle model, an increase in current total factor productivity
A) increases investment demand. B) decreases investment demand. C) has no impact on investment demand. D) has an ambiguous effect on investment demand.
Suppose that the price elasticity of demand for a product is ?1 and that the price elasticity of supply is +1 . Assume also that the income elasticity of demand is +2 . Then an increase in income of 10% will raise equilibrium price by
a. 10%. b. 5%. c. 20%. d. an annual amount that cannot be determined.
Stock dividends and interest payments are examples of factors of production
a. True b. False Indicate whether the statement is true or false