In a country called Uncle Sam Land (USL), the labor demand curve is given by: W = K- 4L Where W is the wage rate, K is a variable determined by accumulated capital stock in the country, and L is the labor force in the country. K= 50 is supplied by the capitalists. If the labor force in this country goes up from 10 to 11, what happens to the national income in USL? National Income = income of all workers + income of all capitalists. Select one: a. Does not change b. Goes down by 44 c. Goes up by 8 d. Goes up by 26 e. None of the above.
In a country called Uncle Sam Land (USL), the labor demand curve is given by: W = K- 4L Where W is the wage rate, K is a variable determined by accumulated capital stock in the country, and L is the labor force in the country. K= 50 is supplied by the capitalists. If the labor force in this country goes up from 10 to 11, what happens to the national income in USL? National Income = income of all workers + income of all capitalists. Select one: a. Does not change b. Goes down by 44 c. Goes up by 8 d. Goes up by 26 e. None of the above.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In a country called Uncle Sam Land (USL), the labor
W = K- 4L
Where W is the wage rate, K is a variable
determined by accumulated capital stock in the
country, and L is the labor force in the country.
K= 50 is supplied by the capitalists.
If the labor force in this country goes up from 10 to 11, what happens to the
National Income = income of all workers + income of all capitalists.
Select one:
a. Does not change
b. Goes down by 44
c. Goes up by 8
d. Goes up by 26
e. None of the above.
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