Country A has a lower stock of capital than Country B, but the supply of labor in both the countries is equal
A) An additional unit of capital will increase output in Country A only if there is an increase in the total efficiency units of labor.
B) The increase in output due an additional unit of capital will be larger in Country A than in Country B.
C) The increase in output due an additional unit of capital will be smaller in Country A than in Country B.
D) An additional unit of capital will increase output in Country B only if there is an increase in the total efficiency units of labor.
B
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Refer to the above figure. If a price ceiling of $3 was set
A) the quantity sold would be 80 units. B) there would be a surplus of 40 units. C) there would be a shortage of 40 units. D) there would be a shortage of 20 units.
Which of the following was not a component of the National Recovery Act (NIRA)?
a. Set minimum prices for goods. b. Set minimum wages. c. Set a minimum number of hours of work. d. Institute codes of fair practice for various industries.