The Effects of the National Health Care Program on Labor

question 133

Multiple Choice

The effects of the national health care program on labor markets will

• A) lower the effective wage rate that they must pay for each unit of labor.
• B) decrease the marginal revenue product of labor.
• C) increase the marginal revenue product of labor.
• D) move upward along their downward-sloping marginal-product-of-labor curve.

---

Definitions:

Double-declining-balance Method

An accelerated depreciation method that doubles the depreciation expense compared to the straight-line method.

Depreciation Expense

Systematically dividing the expense of a tangible asset over the period it remains useful.

Scrap Value

The estimated worth of an asset's materials when the asset is deemed no longer useful and is intended to be disposed of or recycled.

Straight-line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its expected useful life.