The size of the reduction in quantity of labor hired by a firm due to an increase in the wage rate depends upon all of the following except:
a. what percentage of total costs are made up of labor costs.
b. how much quantity demanded in the output market will be reduced by a higher price.
c. the capital to labor ratio before the wage increase.
d. how easily other inputs can be substituted for labor.
c
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How will a government-imposed minimum wage affect the equilibrium level of employment in a competitive labor market and in a monopsony labor market?
What will be an ideal response?
Variables X and Y are independent of each other. If we plot X on the horizontal axis and Y on the vertical axis, the line that connects combinations of X and Y in a two-variable diagram is
A) parallel to the horizontal axis. B) downward-sloping (left to right). C) parallel to the vertical axis. D) upward-sloping (left to right). E) a or c
Normative economic analysis involves
A) positive analysis. B) value judgments. C) if-then statements. D) objective descriptions of the way things are.
If the dollar depreciates relative to other currencies, which of the following is true?
A. It takes more foreign currency to buy a dollar. B. It takes more dollars to buy a foreign currency. C. U.S. exports will decrease. D. Foreign purchases of U.S. goods will decrease.