The demand curve for labor slopes down because
A. firms must lower prices to sell the additional units of its product that the extra workers produce.
B. of the law of diminishing marginal product.
C. firms value less efficient workers less than they value more efficient workers.
D. of profit maximizing behavior.
Answer: B
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Which of the following statements is true?
a. The national debt as a percentage of GDP is greater today than during any other period in our nation's history. b. A sizeable external national debt will transfer purchasing power away from foreigners to domestic citizens. c. Keynesian theory assumes a total crowding out effect associated with deficit spending. d. U.S. national debt is 12 times its size in 1980.
Which of the following is true of a perfectly competitive firm?
a. It can exert slight control over the market price of its output. b. It can exert significant control over the market price of its output. c. It can exert no control over the market price of its output. d. It can work with competitors to exert control over the market price of its output.