A decrease in the supply of labour is likely to lead to ?

Related Mcqs:

1. In a competitive labour market firms will hire labour up to the point where the marginal revenue product of labour equals ?

   A. total labour cost
   B. the marginal product
   C. the price of the product
   D. the wage rate

2. A fall in demand for labour is likely to lead to ?

   A. A lower equilibrium wage and lower quantity of labour
   B. A lower equilibrium wage and higher quantity of labour
   C. A higher equilibrium wage and higher quantity of labour
   D. A higher equilibrium wage and lower quantity of labour

3. According to supply side economists as tax rates are reduced labour supply should increase. This implies that ?

   A. There is no income effect when tax rates are changed
   B. The income effect of a wage change is greater than the substitution effect of a wage change.
   C. There is no substitution effect when tax rates are changed
   D. The substitution effect of a wage change is greater than the income effect of a wage change

4. Suppose that the supply curve of tin is highly inelastic. If the demand curve of tin decrease and increase cyclically along the supply curve of tin, then in this market the size of the quantity fluctuation will bathe size of the price fluctuations ?

   A. relatively greater than
   B. relatively less than
   C. the same as
   D. Any of the above

5. According to the quantity theory of money an increase in the money supply is most likely to lead to inflation if ?

   A. The velocity of circulation decrease
   B. The number of transaction decrease
   C. There is deflation
   D. The velocity of circulation and the number of transactions is constant

6. In a perfectly competitive labour market firms are wage takers and the marginal cost of labour equals?

   A. The average cost of labour
   B. The marginal product
   C. The marginal revenue
   D. The total cost of labour

7. The formula for the marginal revenue product of labour (L is for labour, X is the product) is ?

   A. MPL + PX
   B. (MPL) (PX)
   C. PX/MPL
   D. MPL/PX

8. The substitution effect of a rise in the price of labour will ____ the quantity of labour and the output, effect will ____ it

   A. increase; increase
   B. increase; reduce
   C. reduce; reduce
   D. reduce; increase

9. When the decrease in the price of one good causes the demand for another good to decrease, the goods are_________?

   A. complements
   B. substitutes
   C. inferior
   D. nromal

10. Assume there is no government or foreign setor, If the MPC is 75 a Rs20 million decrease in planned investment will cause aggregate output to decrease by ?

    A. Rs80 million
    B. Rs20 million
    C. Rs 15 million
    D. Rs26.67 million