The introduction of word processing software that increases the demand for workers with computer skills relative to those without such skills is an example of:
A. skill-biased technological change.
B. increasing reservation prices.
C. the diminishing marginal product of labor.
D. globalization.
Answer: A
You might also like to view...
You're deciding whether to install an $800 moonroof and a $400 security system in your car. Suppose the marginal benefit from the moonroof is $700 and the marginal benefit from the security system is $600. The economic decision rule dictates that you should:
A. purchase both options because the combined cost of both is less than the combined benefit. B. not purchase either because the benefits of each do not exceed the costs. C. purchase only the security system because its marginal benefit exceeds its marginal cost. D. purchase only the moonroof because that will provide you with the greatest marginal benefit.
The basic idea behind the multiplier is that an increase in
A. GDP brings about an additional, larger increase in GDP. B. consumer spending causes a larger increase in investment spending. C. government spending causes a larger increase in tax revenues. D. spending will cause an even larger increase in equilibrium GDP.
In 2007, which of the following U.S. firms showed the first indication of significant problems in the financial sector?
A. AIG B. Bear Stearns C. J.P. Morgan Chase D. Lehman Brothers
Firms hire labor at the point where the
A. real wage rate equals the marginal revenue product of capital. B. real wage rate equals the marginal revenue product of labor. C. nominal wage rate equals the marginal revenue product of labor. D. nominal wage rate equals the marginal product of labor.