An improvement in technology that allows workers to process twice as many insurance forms in an hour than before will cause
a. more labor to be employed because its marginal revenue product has fallen
b. an increase in insurance premiums
c. fewer workers to be employed because their marginal revenue product has decreased
d. more workers to be employed because their marginal revenue product has increased
e. fewer workers to be employed because their marginal revenue product has increased
Question 2
Governments often subsidize activities that generate positive externalities in order to get people to engage in more of them.
a. True
b. False
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