Suppose that a war is fought will biological weapons. The weapons destroy people but not capital. What is likely to happen to equilibrium wages and rental rates after the war when compared to their values before the war ? A.…
An increase in the price of automobiles shifts the demand for autoworkers to the ? A. left and decreases the wage B. right and decreases the wageC. right and increases the wage D. left and increases the wage
A competitive profit-maximizing firm should hire workers up to the point where ? A. the wage, the rental price of capital and the rental price of land are all equal B. the marginal product of labor equals zero and the…
An individual firm’s demand for a factor of production ? A. Slopes downward because an increase in the production of output reduces the price at which the output can be sold in a competitive market, thereby reducing the value of…
A decrease in the supply of farm tractors will cause all but which of the following ? A. an increase in the rental rate for tractor B. a decrease in the rental rate of farmland C. a decrease in the…
What will a decrease in the supply of fishermen do to the market for capital employed in the fishing industry ? A. increase the demand for fishing boats and decrease rental rates on fishing boats B. decreases the demand for…
For a competitive profit-maximizing firm, the value-of-the-marginal-product curve for capital is the firm’s ? A. supply curve of capitalB. demand curve for capital C. production function D. marginal cost curve
If a factor exhibits diminishing marginal product, hiring additional units of the factor will ? A. cause a reduction is output B. have no effect on output C. increase the marginal product of the factorD. generate ever smaller amounts of…
When capital is owned by the firm as opposed to being directly owned by household capital income may take any of the following forms except ? A. interest B. dividendsC. increases in stocks of goods D. retained earnings
Which of the following is not true with regard to workers who have a high value of marginal product? These workers ? A. have skills that are in relatively scarce supply B. produce output for which there is great demandC.…