In a world of perfect certainty, sharecropping would be less efficient than a farm owner working his own farm because
(a) sharecroppers receive only half of their marginal product.
(b) paying a worker a wage gives him or her an incentive to shirk.
(c) sharecroppers are exploited by landlords.
(d) renting farmland concentrates risk on the renters.
(e) all of the above.
A
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Which of the following is an example of comparative statics?
A) The estimation of the supply of a good when the wage rate of labor changes from $30 to $10 per hour B) The estimation of the ideal number of workers a firm should hire when wage rate is $20 per hour C) The estimation of the quantity demanded of a good when its price is $5 D) The estimation of the demand for a particular good when consumer income is $10
According to real business cycle theory, a likely cause of an increase in employment is ________
A) an increase in the real wage B) an increase in aggregate demand C) a decrease in the real wage D) a decrease in the real interest rate