1. A relaxation of U.S. immirgration laws and regulations would
a. further reduce wages in poorer countries
b. turn some permanent resource differentials into temporary ones
c. increase the demand for labor in the United States
d. turn some temporary resource differentials into permanent ones
e. increase the supply of labor in poorer countries
2. Every individual has a labor supply curve in each market where is a possible use for his/her labor
a. True
b. False
3. If the substitution effect dominates the income effect, then as increase in the wage rate will increase the quantity of labor supplied by an individual
a. True
b. False
4. A marginal revenue product curve shows the change in
a. total revenue caused by a one unit change in output, other things constant
b. total revenue caused by a one unit change in input, other things constant
c. total product caused by a one unit change in output, other things constant
d. total product caused by a one unit change in an input, other things constant
e. total revenue product caused by a one unit change in the price of the output, other things constant
5. The more complicated a production process is
a. the lower the transactions cost of using markets
b. the lower the cost of production
c. the more likely the market will be used to organize production
d. the more likely that transaction costs decrease through centralized of production
e. the more likely that transaction costs decrease through use of markets