During the Black Plague, capital became worthless. What can explain this?
A) Capital's marginal product fell because there was less labor.
B) Capitalists died off at a greater rate than the workers.
C) Capital's marginal product increased but the marginal product of labor decreased.
D) Workers forgot how to use the capital.
A
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The labor market demand curve
A) is the summation of the labor demand curve for each output market. B) is identical to the average firm labor demand curve. C) is the sum of the wages paid for each unit of labor of the individual firms labor demands. D) is always upward sloping for competitive labor markets.
Under a system of marketable pollution permits:
A. pollution will increase. B. firms may trade the right to pollute a certain amount. C. firms can only buy the right to pollute from the government. D. the government is not involved.