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Markets for Factors of Production - LOS c ~ Q1

Q1Which of the following factors is least likely to affect the supply of labor?

A)   The accumulation of capital.

B)   The aggregate requirement for labor.

C)   Wages offered.

Q2When workers agree to forego leisure to undertake labor and receive wages, the term that is applied in labor supply economics is the:

A)   income effect.

B)   substitution effect.

C)   marginal rate of substitution.

Q3When smaller amounts of additional labor are supplied in response to increases in the wages offered, this is known as the:

A)   income effect.

B)   substitution effect.

C)   marginal rate of substitution.

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d

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d

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