An improvement in technology that allows workers to process twice as many insurance forms in an hour than before will cause
a. more labor to be employed because its marginal revenue product has fallen.
b. an increase in insurance premiums.
c. fewer workers to be employed because their marginal revenue product has decreased.
d. more workers to be employed because their marginal revenue product has increased.
e. fewer workers to be employed because their marginal revenue product has increased.
D
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If Bonnie can produce either 10 hats or 20 scarves in a month, and Phil can produce either 10 hats or 5 scarves in a month, then
A) Bonnie is equally efficient at producing hats, compared to Phil. B) Bonnie is more efficient at producing hats, compared to Phil. C) Bonnie is more efficient at producing scarves, compared to Phil. D) Phil is more efficient at producing scarves, compared to Bonnie.
In any efficiency wage model, it must be true that
a. the marginal benefit of increased efficiency is equal to the marginal cost of higher wages. b. nominal wages are inflexible. c. disequilibrium in the labor market exists. d. all of the above. e. none of the above.