An adverse supply shock, such as a reduced supply of raw materials, would
A) increase the marginal product of labor.
B) decrease the marginal product of labor.
C) decrease the marginal product of capital, but have no effect on the marginal product of labor.
D) not affect the marginal product of labor.
B
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In a market undergoing technological change, firms that
A) adopt the new technology temporarily incur an economic loss. B) adopt the new technology temporarily make an economic profit. C) do not adopt the new technology temporarily make an economic profit. D) do not adopt the new technology increase their market share. E) do not adopt the new technology continue to make a normal profit.
An economy that trades with the rest of the world is a(n) ________.
A. command economy B. closed economy C. open economy D. trade economy