A firm practices input substitution when it
a. retrains Joe the welder as a painter and Pat the painter as a welder.
b. buys extra machines for its workers to use.
c. allows fixed cost to become variable.
d. replaces unskilled labor with automated machinery.
d
You might also like to view...
Refer to Figure 9-1. Based on the graph of the labor market above, if a minimum wage is set at $5 per hour, which of the following will occur?
A) The level of unemployment will rise, but the percentage of the labor force unemployed will not change. B) The unemployment rate will fall. C) The unemployment rate will rise. D) None of the above will occur.
China has few state-owned enterprises left in its economy
Indicate whether the statement is true or false
Ceteris Paribus, if current output has fallen below potential ________
A) a positive inflation gap will ensue B) it is likely that the equilibrium real rate has fallen below the policy rate C) a negative unemployment gap will ensue D) it is likely that the equilibrium real rate has risen above the policy rate E) none of the above
Condorcet's Paradox occurs when:
a. majority rule voting cycles among alternatives. b. majority rule voting results in decisions that are not Pareto optimal. c. point voting yields indeterminate results. d. point voting results in decisions that are not Pareto optimal.