Which of the following would cause labor's share of national income to decrease?
A) labor productivity increases less rapidly than the real wage rate.
B) labor productivity increases more rapidly than the real wage rate.
C) labor productivity has increased at the same rate as the real wage rate.
D) labor's share of national income is not affected by the relative growth rates of labor productivity and the real wage rate.
A
Economics
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"A doubling of the price of gasoline in the 1970s did not reduce consumption one iota." The person making the above claim evidently thinks the demand for gasoline is
A) completely elastic. B) completely inelastic. C) greater than the supply. D) less than the supply. E) unit elastic.
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How do constant returns to scale affect the shape of the long-run average cost curve?
What will be an ideal response?
Economics