. Which of the following will NOT result in a shift in the labor demand curve? A. New technology that raises the marginal physical product of labor. B. An increase in the wage. C. A decrease in the price of the good produced. D. All of these will shift the labor demand curve.
Q-1. How would you describe the relationship between labor productivity and labor earnings over the last several decades?
A. Labor productivity declined after 1990, but labor compensation continued to grow.
B. Labor compensation and productivity grew very similarly until the mid-1970s, and after that productivity grew faster than labor compensation.
C. Labor compensation and productivity grew very similarly until the mid-1970s, and after that labor compensation grew more rapidly than productivity did.
D. Labor productivity and labor compensation grew at the same rate, as they always must according to our model.
Q-2. Which of the following will NOT result in a shift in the labor demand curve?
A. New technology that raises the marginal physical product of labor.
B. An increase in the wage.
C. A decrease in the price of the good produced.
D. All of these will shift the labor demand curve.
PLEASE SOLVE BOTH QUETIONS
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