The Labor Demand Curve Slopes Down Because

question 171

Multiple Choice

The labor demand curve slopes down because

• A)fewer workers work at low wages.
• B)capital will substitute for labor as wages decrease.
• C)of the diminishing marginal product of labor.
• D)of the income effect of rising wages.

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Definitions:

Durbin-Watson D Statistic

Utilized in analyzing the extent of autocorrelation in the residuals from regression models, specifically focusing on serial correlation.

Normality

The condition of conforming to a normal distribution, characterized by data that plots as a bell-shaped curve.

Durbin-Watson Statistic

A measure used in statistics to detect the presence of autocorrelation at lag 1 in the residuals from a regression analysis.

Residual

The difference between an observed value and the estimated value in a regression analysis.