If providing more labor and consuming less leisure would make a worker better off, then the wage rate must be greater than the worker's
a. marginal revenue product.
b. marginal value of leisure.
c. nonlabor income.
d. human capital.
b. marginal value of leisure.
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Recall the Application. If it is not known whether the decrease in price of illegal drugs is primarily due to a change in supply, a change in demand, or equal changes in both, the equilibrium quantity of drugs
A) will increase. B) will decrease. C) will not change. D) may or may not change.
Rwanda is a clear example of a country that has:
A. achieved economic growth only after a democratic regime was in place. B. achieved economic growth without a democratic regime. C. failed to achieve economic growth without a democratic regime. D. failed to achieve economic growth, despite having a democratic regime.
At the most basic level, the distinguishing characteristic of government that makes it different from private firms is its ability to
a. use coercive force against adults to modify their behavior or force them to pay for a good or service. b. direct resources in a manner that serves the public interest rather than the private interest of individuals. c. produce goods and services that people value. d. escape the constraints imposed by scarcity.
Which of the following is an argument of opponents of devaluations?
A) Devaluations cause relatively slow adjustments. B) Participants in foreign exchange markets have a short memory: if the expected devaluation doesn't occur within a short time-period, they will stop expecting it. C) A devaluation causes a nation with fixed exchange rates to lose credibility in the medium run, driving its interest rate higher. D) all of the above E) none of the above