The labor supply curve shift following a decrease in the capital stock is a result of A. intertemporal substitution of leisure B. a negative income effect C. consumption smoothing D. a positive income effect When current total factor productivity increases: A. firms sell capital because the remaining capital is more productive B. firms hire more workers because the marginal product of labor increases. C. firms hire fewer workers because the remaining workers are more productiv D. firms increase investment because the marginal product of capital increases Which of the following correctly explains why the labor demand curve doesn't shift following an increase in government spending? A. There is no substitution effect. B. There is no income effect. C. There is no change in the wage rate D. There is no change in the marginal product of labor.

The labor supply curve shift following a decrease in the capital stock is a result of A. intertemporal substitution of leisure B. a negative income effect C. consumption smoothing D. a positive income effect When current total factor productivity increases: A. firms sell capital because the remaining capital is more productive B. firms hire more workers because the marginal product of labor increases. C. firms hire fewer workers because the remaining workers are more productiv D. firms increase investment because the marginal product of capital increases Which of the following correctly explains why the labor demand curve doesn't shift following an increase in government spending? A. There is no substitution effect. B. There is no income effect. C. There is no change in the wage rate D. There is no change in the marginal product of labor.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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