An increase in the demand for automobiles will increase the demand for labor used to produce the automobiles due to a(n)
a. increase in the marginal revenue product of labor
b. decrease in the marginal revenue product of labor
c. increase in the marginal revenue product of automobiles
d. decrease in the marginal revenue product of automobiles
e. decrease in the price of automobiles
A
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Refer to Figure 7-4. With insurance and a third-party payer system, the equilibrium quantity of medical services is
A) 200. B) 500. C) 700. D) >700.
A German tourist visits Disney World in Orlando; the expenditures made by the German tourist are included in U.S. GDP
Indicate whether the statement is true or false
A profit-maximizing firm should spend an additional dollar on advertising so long as this expenditure results in more than one dollar of:
a. additional sales. b. reduced costs. c. increased profits. d. demand.
If the MPP of an additional unit of labor is 3 units per hour, product price is constant at $8 per unit, and the wage rate is $26 per hour, then
A. Product price must be reduced if profits are to be made. B. The employer should lower wages and accept less employment of labor. C. The additional unit of labor should be employed. D. The additional unit of labor should not be employed because it costs more than it is worth.