A. training investment
B. skill capital
C. skill-building investment
D. human capital
A. encourage people to quit their jobs
B. reduce the cost of job search
C. enable people to quit searching for work
D. reduce the benefits of additional job searching
A. total variable cost curve
B. marginal cost curve
C. total product of labour curve
D. marginal product of labour curve
A. the marginal product of capital times the price of labour.
B. the additional revenue a firm earns by employing on additional unit of labour
C. the additional profit a firms earns by employing one additional unit of labour
D. the additional revenue the firm makes by selling one unit of labour.
A. the demand curve for accountants to shift to the right, since the productivity of accountants has increased
B. firms to move up their demand curves for accountants
C. the demand curve for accountants to shift to the left, since it requires fewer accountants than it did before to do the same amount of work.
D. firms to move down their demand curves for accountants
A. remains constant
B. increases since the cost of forgoing one hour of work increases
C. decreases since the customer now has more income to spend
D. may increase of decrease depending on the individual’s preferences.
A. income effect is zero
B. substitution effect outweighs the income effect
C. income effect outweighs the substitution effect
D. income effect and the substitution effects are equal
A. will have no effect on labour supply
B. will decreases labour supply
C. could cause either an increases or a decrease in labour supply
D. will increase labour supply.
A. making spending decision but not labour-supply decision.
B. making both spending and labour-supply decisions
C. considered to be ‘poor’ but not for those who are considered to be ‘rich’
D. making labour-supply decisions but not spending decisions.
A. generates a smaller disincentive to work than most alternative anti-poverty policies.
B. reduces the cost to the government of fighting poverty
C. would not provide benefits to lazy people
D. ensures that the poor actually receive what the government thinks they need does all these answers.