What can cause the demand curve for labor to shift? Explain
What will be an ideal response?
The demand curve for labor is the marginal revenue product curve, which is marginal physical product multiplied by marginal revenue. For a perfectly competitive firm, marginal revenue equals price. Whenever the product price changes, the demand curve for labor shifts. Whenever marginal physical product changes due to changes in productivity, the demand curve for labor shifts. The changes in the prices of related factors (substitutes and complements) will also shift demand. The demand for labor is a derived demand, so an increase in the demand for the product produced causes the demand for labor and other variables inputs to change.
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Traders in futures markets settle gains and losses each day
A) by making margin payments. B) by using settlement-by-offset. C) in a process called mark-to-market settlement. D) by making arbitrage payments.
To understand how the colonial economy developed, Hughes and Cain (2011) claim one must understand
(a) what motivated colonists to settle in different locations. (b) what colonists produced, how much they produced, for whom they produced and with whom they traded. (c) the legal system in which they operated. (d) all of the above.