Question. In a country called Uncle Sam Land (USL), the labor demand curve is given by: W
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Question:
Question.
In a country called Uncle Sam Land (USL), the labor demand curve is given by:
W = K – 4L
Where W is the wage rate, K is a variable determined by accumulated capital stock in the country, and L is the labor force in the country.
K = 50 is supplied by the capitalists.
If the labor force in this country goes up from 10 to 11, what happens to the national income in USL?
National Income = income of all workers + income of all capitalists.
Select one:
a. Does not change
b. Goes down by 44
c. Goes up by 8
d. Goes up by 26
e. None of the above.
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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