A decrease in the capital–labor ratio would result in:
a. higher labor productivity because labor does more work
b. lower labor productivity because labor is working with relatively less capital.
c. higher labor productivity because labor is producing less capital and more of other goods.
d. lower labor productivity because more capital is available.
e. higher labor productivity because more capital is available.
b
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According to the rational expectations hypothesis, individuals form their expectations about future values of economic variables by all of the following EXCEPT
A) past information. B) current information. C) their understanding of how the economy operates. D) formal models of macroeconomics.
Industry A has market shares of 50, 30, and 20 . Industry B has market shares of 45, 40, and 15 . where si is the market shares of the i-th firm in the industry
a. The Herfindahl index for A is 100. b. The Herfindahl index for A is 3,800. c. The Herfindahl index for B is 3,600 d. The Herfindahl index for A is greater than for B. e. The Herfindahl index is for B is 4,000.
If the marginal propensity to consume was 0.75, it would mean that:
A. $0.25 of an additional $1 of individuals' after-tax income is spent on consumption. B. $0.75 of an additional $1 of individuals' after-tax income is spent on consumption. C. $0.75 of an additional $1 of individuals' after-tax income is saved. D. None of these is true.
Suppose consumer preference for organic corn starts to rise while the cost of growing organic corn continues to rise. In the market for organic corn, this would be represented by the equilibrium price ________ and the equilibrium quantity ________
A) increasing; increasing or decreasing B) decreasing; increasing or decreasing C) increasing or decreasing; increasing D) increasing or decreasing; decreasing