Give at least three reasons why U.S. workers supply so much more labor than workers in France and other rich leader countries.
What will be an ideal response?
There are many possible explanations: (a) cultural differences regarding the balance between work and leisure, with French workers having a preference for more leisure; (b) the effects of strong unions in France and other leader nations that limit the supply of work; (c) having higher and more generous unemployment and retirement benefits in France and other leader nations that reduces the size of the labor force; (d) higher taxes in France and other leader nations that reduce the incentive to work; and (e) greater legal restriction on the length of the work week in France limits work time compared with the United States.
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Explain and show graphically how an increase in incomes in the United States will affect equilibrium in the foreign exchange market?
What will be an ideal response?
The additional output that one additional input of labor is responsible for is its
A. marginal revenue product. B. marginal physical product. C. average revenue product. D. average physical product.