If increased capital usage reduces the firm's short-run demand for labor, then
a. labor is a regressive factor.
b. labor and capital are complements in production.
c. labor and capital are substitutes in production.
d. labor is a Giffen factor.
c. labor and capital are substitutes in production.
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In the United States, who determines monetary policy? What is the major tool used to determine monetary policy?
What will be an ideal response?
High inflation makes money ________ because ________
A) function better as a store of value; it leads to a more accurate allocation of resources B) function less well as a store of value; the money loses value and therefore has less purchasing power C) function better as a store of value; the money gains value and therefore has greater purchasing power D) function better as a unit of account; money never loses value but it does gain purchasing power in some regions E) function less well as a store of value; it decreases the price level and increases the buying power of money
In the above figure, when the price of pretzels is $3.00 per pound, the total producer surplus from all the pretzels will be
A) zero. B) greater than at any other price. C) less than at any other price. D) the sum of the difference between $3.00 and the marginal cost of all the pounds produced.
When a country runs a trade deficit,
a. it must be running a budget surplus. b. its imports will become injections instead of leakages. c. its exports will become leakages instead of injections. d. foreigners will demand loanable funds from the country. e. foreigners will supply loanable funds to the country equal to its trade deficit