Explain why wage rates might rise at Joe's Quik-Print Shop if Joe replaces his aging copy machines with state-of-the-art copy machines
The improvement in technology will boost the productivity of Joe's employees. Their MRP will rise, and
since Joe's labor demand curve is the MRP curve, he will be willing and able to hire more workers and pay
higher wage rates.
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An expansionary gap creates labor shortage that eventually results in a higher nominal wage and a lower price level
Indicate whether the statement is true or false
If a bond's purchase price equals the face value the:
A. current yield equals the yield to maturity, which exceeds the coupon rate. B. coupon rate equals the yield to maturity, which equals the current yield. C. coupon rate equals the current yield, which is less than the yield to maturity. D. coupon rate does not equal the current yield, which does not equal the yield to maturity.