Consider an economy that only produces steel and shoes; steel is capital intensive and shoes are labor intensive. How will emigration of labor from this economy affect the marginal productivity of labor?
a. It will fall.
b. It will not change.
c. It will rise.
d. It will fall in the short run and rise in the long run.
Answer: b. It will not change.
Economics
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In the figure above, if pizza production increases to 15,000 pizzas a day, then marginal benefit ________ marginal cost, and ________ occurs
A) exceeds; overproduction B) exceeds; underproduction C) is below; overproduction D) is below; underproduction E) exceeds; efficient production
Economics
What is the discount rate and how does changing it affect the money supply?
What will be an ideal response?
Economics