Principles of Microeconomics
Principles of Microeconomics
A storm destroys several factories, thereby reducing the stock of capital. What effect does this event have on factor markets?
a. Wages and the rental price of capital both rise.
b. Wages and the rental price of capital both fall.
c. Wages rise and the rental price of capital falls.
d. Wages fall and the rental price of capital rises.
Option (d):
Labors wage is determined by the level of the marginal productivity of labor. Decreasing the stock of capital also reduces the marginal productivity of labor and supply of capital stock. Since the marginal productivity of labor decreases, the wage level decreases. The decreasing supply of capital leads to the shortage of capital that in turn increases the rental price of capital. Thus, the option “d” is correct.
Option (a):
Thewage will increase only when the marginal productivity of labor increases. Themarginal productivity of labor increases when the capital stock increases...
Chapter 18 Solutions
Additional Business Solutions
Find more solutions based on key concepts
Show solutions addA survey of 131 investment managers in Barrons Big Money poll revealed the following: 43% of managers classifie...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
The main difference between imposing a tariff and handing out licenses under an import quota is that a tariff i...
Principles of Macroeconomics (MindTap Course List)
(Perfect Competition in the Long Run) Draw the short- and long-run cost curves for a competitive firm in long-r...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
The three most popular options on a certain type of new car are a built-in GPS (A), a sunroof (B), and an autom...
Probability and Statistics for Engineering and the Sciences
Define private saving, public saving, national saving, and investment. How are they related?
Brief Principles of Macroeconomics (MindTap Course List)
Draw a circular-flow diagram. Identify the parts of the model that correspond to the flow of goods and services...
Principles of Economics (MindTap Course List)
What three roles can an accountant fill in relation to the AIS? Describe them.
Accounting Information Systems
Natural Resource and Intangible Accounting McLeansboro Oil Company acquired a small oil company with only three...
Cornerstones of Financial Accounting
The required return on equity, rs, is the final input needed to estimate intrinsic value. For our purposes, you...
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Claim Denial: Sorry—Smokers Must Cough Up Cash. Recently the Century Park Hotel embarked on a two-year plan to ...
Essentials of Business Communication (MindTap Course List)
AFTER-TAX COST OF DEBT The Holmes Companys currently outstanding bonds have an 8% coupon and a 10% yield to mat...
Fundamentals of Financial Management (MindTap Course List)
Entries for installment note transactions On the first day of the fiscal year, Shiller Company borrowed 85,000 ...
Financial & Managerial Accounting
Sales-related and purchase-related transactions using perpetual inventory system The following were selected fr...
Corporate Financial Accounting
To match human resources supply and demand, how is attrition used?
Foundations of Business (MindTap Course List)
BETA AND REQUIRED RATE OF RETURN A stock has a required return of 9%, the risk-free rate is 4.5%, and the marke...
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Adjusting and reversing entries On the basis of the following data, (a) journalize the adjusting entries at Jun...
Financial And Managerial Accounting
In an hour, Mateo can wash 2 cars or mow 1 lawn, and Tyler can wash 3 cars or mow 1 lawn. Who has the absolute ...
Essentials of Economics (MindTap Course List)
Hoffman Company purchased merchandise on account from a supplier for 65,000, terms 1/10, n/30. Hoffman Company ...
Financial Accounting
Can a manager be effective and successful today without using social media? What do you see as the most importa...
Management, Loose-Leaf Version
ACCOUNTING PROCESS List the six major steps of the accounting process in order (16) and define each.
College Accounting, Chapters 1-27
Refer to the system flowchart in the figure labeled Problem 12. Required a. Describe the control weaknesses dep...
Accounting Information Systems
The receiving department employs one worker who spends 25% of his time on the receiving activity and 75% of his...
Managerial Accounting: The Cornerstone of Business Decision-Making
Contrast the focus of marketing activities during the five eras of marketing history.
Contemporary Marketing
Discuss the political and legal environment of marketing
MKTG 12:STUDENT ED.-TEXT
Comprehensive At December 31, 2018, certain accounts included in the property, plant, and equipment section of ...
Intermediate Accounting: Reporting And Analysis
Under the perpetual inventory system, how does the seller record sales made on account?
College Accounting (Book Only): A Career Approach
Is a gas tax better described as reflecting the ability-to-pay principle or the benefits-received principle? Wh...
Exploring Economics
The Nielsen Company surveyed consumers in 47 markets from Europe, Asia-Pacific, the Americas, and the Middle Ea...
Statistics for Business & Economics, Revised (MindTap Course List)
For the current year, Packers Company decided to switch from the indirect method to the direct method for repor...
Accounting (Text Only)
CONSTANT GROWTH VALUATION Thomas Brothers is expected to pay a 0.50 per share dividend at the end of the year (...
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
When is the equity method the appropriate accounting for equity investments?
Financial & Managerial Accounting
A storage tank acquired at the beginning of the fiscal year at a cost of 75,000 has an estimated residual value...
Financial Accounting
Draw the supply and demand curves for cookies. If the government imposes a tax on cookies, show what happens to...
Principles of Macroeconomics (MindTap Course List)
Hartman Company, which uses a voucher system, has the following unpaid vouchers on July 1. The firm follows the...
College Accounting (Book Only): A Career Approach
Explain the function of each of the four closing entries made by Sunflower Cycle.
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Using Past Information to Estimate Required Returns Use online resources to work on this chapter's questions. P...
Fundamentals of Financial Management (MindTap Course List)
Prepare a narrative to describe the system depicted in the logical DFD in Figure 4.16. FIGURE 4.16 Logical DFD ...
Pkg Acc Infor Systems MS VISIO CD
How might lags reduce the effectiveness of fiscal policy?
Economics (MindTap Course List)
If lowering lending standards can indirectly raise housing prices, can increasing lending standards lower housi...
Microeconomics
As price declines, quantity demanded rises but quantity supplied does not change. Draw the supply and demand cu...
Macroeconomics
Suppose most business executives expect a slowdown in the economy. How might this situation affect the economy?
Economics For Today
Sales-related transactions The- following selected transactions were completed by Affordable Supplies Co., whic...
Survey of Accounting (Accounting I)
Profitability ratios Ralph Lauren Corporation sells apparel through company-owned retail stores. Recent financi...
Corporate Financial Accounting
Banwood Company has the following information for 20x1: There were no beginning inventories. What is the ending...
Cornerstones of Cost Management (Cornerstones Series)
In order to get caught up, an employee takes work home. Must the employee be paid for this extra time?
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Certain industries, such as the computer industry, are faced with constantly changing technologies, short produ...
Purchasing and Supply Chain Management
