Which of the following is the most accurate definition of a worker's "marginal revenue product"?
a. the change in the firm's profits as the result of hiring an additional worker
b. the change in the firm's total revenue as the result of hiring an additional worker
c. the change in the firm's output as the result of hiring an additional worker
d. the change in the firm's cost as the result of hiring an additional worker
B
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If the unemployment rate decreases from 9% to 6%, the economy will
A. move away from the ppf toward the origin. B. remain on the ppf. C. remain on the origin. D. move closer to a point on the ppf.
What group tends to benefit from the sugar price supports?
A. Manufacturers of products that use sugar B. Individual consumers of sugar C. Producers of other agricultural products D. Producers of sugar E. All of these responses are correct.
If the nominal interest rate is 6% and the inflation rate is 2% then the real interest rate is
A) 8%. B) 4%. C) 3%. D) 2%. E) 1%.
Given two economic systems, A and B, if economy A has a comparative advantage in the production of widgets, then
A) the inputs necessary to produce widgets in economy A cost less than in economy B. B) economy A must give up less of all other goods to produce widgets than economy B. C) economy A is less efficient in the production of some goods than economy B. D) economy A would not benefit from the specialization of production.