Increasing the minimum wage for workers will:
A) Sole the unemployment problem
B) Result in scarcity of workers
C) Cause a substitution of capital for labour
D) Decrease the MP of those workers
Correct Answer:
Verified
Q4: In market equilibrium, supply is vertical line.
Q5: Every factor of production gets reward equal
Q6: Under perfect competition, demand for a factor
Q7: We should employ units of a factor
Q8: If marginal product of labour rises because
Q10: The price of capital is
A)money
B)Interest
C)profits
D)wages
Q11: If MRP > Price of the factor:
Q12: If MRP = Price of the factor:
Q13: If MRP < P of the factor,
Q14: The labor market equilibrium determines the wage
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