Why is it more difficult for a firm to calculate the marginal revenue product of a player in the industry of professional sports versus that of a worker in a competitive manufacturing industry?
What will be an ideal response?
The owner of a professional sports team can only estimate how much value adding a particular player will have in terms of increased ticket sales and increased television revenue. However, even if the player is just as productive as always fans may lose interest and ticket sales can drop because the team is doing poorly or other factors independent of the player's productivity in the game. In a manufacturing industry it is usually easier to calculate the marginal productivity of a worker since it is something that is easily observed. Also, the price in a competitive manufacturing industry is likely to be more stable and thus the MRP as well.
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During a(n) ________ the demand for money decreases because ________
A) recession; the price level rises B) recession; real GDP decreases C) equilibrium; real GDP decreases D) recession; nominal GDP increases E) expansion; real GDP decreases
For a consumer, a budget line shows the boundary between
A) what is desired and what is not desired. B) what is needed and what is not needed. C) what is affordable and what is not affordable. D) what is available and what is not available.
All of the following will shift the labor supply curve except
A) an increase in labor force participation rate among women. B) a change in a country's immigration policy. C) an increase in the average age of retirement. D) an increase in the wage rate.
C = 2,800 + 0.9y
I = 750 G = 1,200 NX = 150 Given the equations for C, I, G, and NX above, what is the equilibrium level of GDP (Y)? What will be an ideal response?