True, False, or Uncertain:
Increases in productivity lead to lower wages because firms don’t need as many workers as before to produce the same number of goods.
Explain Why this is or is not true
The statement is false
When there is an increase in the productivity of workers, marginal product of labour increases. This will be increasing the demand of labour and therefore the demand curve will be shifting to the right in the labour market. As a result there will be an increase in the wages and an increase in the number of labourers demanded and supplied.
True, False, or Uncertain: Increases in productivity lead to lower wages because firms don’t need as...
Because firms believe that lower wages will lead to reduced worker morale and lower productivity when a negative shock hits, a. firms tend to increase employment b. firms tend to lay-off workers in addition to lowering wages c. firms tend increase employment in addition to lowering wages d. firms tend to lay-off workers rather than lower wages
True, False, Uncertain [18 marks - 6 marks each] Explain why each statement is true, false, or uncertain. 1. The opportunity cost of a point in the interior of the production possibilities set is equal to zero 2. If a country has absolute advantages in the production of all goods, then no trade will take 3. There is a commercial ban on trading ivory, but a black market has developed. Ivory from up because resources are being used efficiently. place....
Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important. a. An increase in consumer incomes will result in an increase in the price of any consumer goods. b. If the unemployment rate decreases, we can be sure that the number of unemployed workers has decreased.
Part A: True/False/Uncertain Questions Indicate whether each of the following statements is true, false or uncertain and explain why. Most of the marks depend on the quality of the explanation - unsupported answers will receive little or no marks. Each question is worth 5 marks for a total of 20 marks. (1) An increase in the tax rate has the same effect on the aggregate expenditure function as a decrease in government spending.
For this section, write whether the statements are True or False or Uncertain (if you say uncertain, have enough evidence to back your answer just as much as the true or false responses). Explain your answer and use diagrams where necessary. (a) If you are the only employer of labor (also known as a monopsonist), in order to attract labor, you only need to raise the wage for the new workers and can leave the older workers' wages unchanged. (b)...
(a) State and explain if the following statements are True, False or Uncertain. You have to explain your option even if the answer is True. If marginal cost in two markets is identical for a firm, then an international monopolistically competitive firm would set the same price in both markets. The Heckscher-Ohlin model can explain why the relative demand for skilled workers has increased within all sectors in developed countries in recent decades. In the specific factor model with labor...
TRUE/FALSE/UNCERTAIN: Explain as well: All firms competing in oligopoly markets make positive economic profits.
true/false/uncertain and explain: Holding everything else constant, the likelihood of a consumer purchasing health insurance increases when the probability of a loss increases.
the only reason open market operations work is because prices are sticky. true, false, or uncertain? explain
For this section, write whether the statements are True or False or Uncertain (if you say uncertain, have enough evidence to back your answer just as much as the true or false responses). Explain your answer and use diagrams where necessary. (a) In an oligopolistic market, two identical firms can charge more for the same product than if there were 100 markets selling the identical product. (b) In a developing country, the government can implement an interest rate cap in...