Suppose that a war is fought will biological weapons. The weapons destroy people but not capital. What is likely to happen to equilibrium wages and rental rates after the war when compared to their values before the war ?

Related Mcqs:

The most important factors of production are ?

A. labor, land, and capital B. water, earth and knowledge C. money, stocks and bonds. D. management finance and marketing...

The value of the marginal product of labor is ?

A. the price of the output times wage of labor B. the price of the output times the marginal product of labor C. none of these answers D. the wage of labor times the quantity of labor E. the wage of labor times the marginal product of labor...

An increase in the demand for apples will cause all but which of the following ?

A. a decrease in the number of apple pickers employed B. an increase in the value of the marginal product of apple pickers C. an increase in the price of apples D. an increase in the wage of apple pickers...

Which of the following is not true with regard to workers who have a high value of marginal product? These workers ?

A. have skills that are in relatively scarce supply B. produce output for which there is great demand C. usually have little capital with which to work D. are usually highly paid...

When capital is owned by the firm as opposed to being directly owned by household capital income may take any of the following forms except ?

A. interest B. dividends C. increases in stocks of goods D. retained earnings...