In the specific factor model, the effect of an increase in the productivity of labor in the production of cloth will cause a(an) ________ in the quantity of labor used to produce cloth, a(an) ________ in the quantity of labor used to produce food and
a(an) ________ in the wage rate. A) increase; decrease; increase
B) decrease; increase; increase
C) increase; decrease; decrease
D) decrease; increase; no change
E) increase; increase; no change
A
You might also like to view...
If firms were teams then there would be a problem of
A) free-riding. B) spontaneous order. C) market-based management. D) internal externalities.
If excess reserves are $10,000, demand deposits are $100,000, and the required reserve ratio is 10 percent, then total reserves are
A. $0. B. $110,000. C. $20,000. D. $10,000.
The main purpose of hiring the celebrity endorser is to:
A. make the customers try the product for the first time. B. make the customers buy the product repeatedly. C. convince the customers that using the product will turn them into celebrities as well. D. pay for the endorser's retirement expenses.
The deficit at natural level of output is called
A) full-employment deficit. B) mid-cycle deficit. C) structural deficit. D) cyclically adjusted deficit. E) all of the above