When will the substitution effect of a wage increase cause a fall in the amount of labor employed?
a. Always.
b. When labor is not a regressive factor.
c. When labor and capital are substitutes in production.
d. When labor and capital are complements in production.
a. Always.
Economics
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In a perfectly competitive market, which of the following will increase the economic profit the firms make in the short run?
A) a decrease in market demand B) an increase in market demand C) an increase in labor costs D) an increase in the number of firms
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The exchange of one good for another, without the use of money, is known as
a. acquisitive exchange b. liquidity c. volatility d. barter e. currency
Economics