Suppose that the marginal revenue product of the eighth worker hired is $12 an hour and the wage rate is $10 an hour. We can say that
A. not enough labor is being hired.
B. just enough labor is being hired.
C. too much labor is being hired.
A. not enough labor is being hired.
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The government can turn a shortage of a good into a surplus by
A) imposing a sufficiently low ceiling price. B) offering subsidies to producers. C) persuading producers to increase the amount of the good available. D) supporting the price of the good above the market clearing level.
A ________ pays out cash flows from a collection of assets in different tranches, with the highest-rated tranch paying out first, while lower ones paid out less if there are losses on the underlying assets
A) collateralized debt obligation (CDO) B) adjustable-rate mortgage C) negotiable CD D) discount bond
Other things being equal, the quantity of money that people wish to hold in currency and their checking accounts can be expected to:
a. increase as the interest rate increases. b. decrease as the interest rate increases. c. decrease as real GDP increases. d. none of these.
In economics, a free rider is the term used for a person who
a. receives the benefit of a good without contributing to its costs of production. b. purchases an item during a "buy one, get one free" sale. c. lives in a town in which the city provides free bus service. d. pays for exactly what they receive.