Increases in the productivity of labor tend to
A. increase the marginal revenue product of labor and the wages employers are willing to pay for any given amount of labor.
B. decrease the marginal revenue product of labor and increase the wages employers are willing to pay for any given amount of labor.
C. increase the marginal revenue product of labor but have no effect on the wages employers are willing to pay for any given amount of labor.
D. decrease the marginal revenue product of labor and the wages employers are willing to pay for any given amount of labor.
A. increase the marginal revenue product of labor and the wages employers are willing to pay for any given amount of labor.
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Classical economists think that lump-sum tax changes
A) should be used to smooth business cycles. B) have a powerful effect on the economy. C) affect aggregate demand after a lag. D) have no effect because of Ricardian equivalence.
Increased United States military expenditures and action in response to the terrorist attacks of September 11, 2001 suggest that military officials in the United States _____
a. could not wait to go to war b. view the War on Terror as a negative externality c. believe that military expenditures can act as a deterrent d. are incompetent