Where L represents labor and X represents output, MPL x PX is the value of labor's marginal product while the wage rate is the
A. marginal cost of a unit of output.
B. marginal revenue of a unit of output.
C. value of labor's marginal revenue.
D. cost of a marginal unit of labor.
Answer: D
You might also like to view...
Most of the day-to-day power in monetary policy decisions lies with
A) the President of the United States. B) the Senate Banking Committee. C) the chairman of the Board of Governors. D) large commercial banks.
Trade-offs are:
A. associated with every decision. B. do not exist if we receive something for free. C. always result in market-failure. D. can be avoided through economic planning.
An economist who claims that an increase in government spending would result mainly in a higher price level believes the economy is operating where
a. the MPC is small. b. the MPC is large. c. aggregate supply curve is flat. d. aggregate supply curve is steep.
If the demand for new cars is elastic, an increase in price will result in:
A. an increase in profits. B. an increase in total revenue. C. a decrease in total revenue. D. an increase in the quantity demanded.