India is on the World Bank's list of ________ countries yet its capital city is one of the top ten centers of commerce in the world.

Consider a country's labor market that is initially in equilibrium. Which of the following changes will be observed if a massive earthquake drastically reduces its total population?

a. The labor supply curve will shift to the right. b. The labor supply curve will shift to the left. c. The labor demand curve will shift to the left. d. The equilibrium wage rate will decrease.

If the marginal physical product (MPP) of labor is 60 and the price of labor per period is $20, the MPP of machinery is 75 and the price of the machinery per period is $25, in order to achieve optimal input proportions the firm should use

a. more labor and less machinery. b. more machinery and less labor. c. more labor with the same amount of machinery. d. the current combination.