In the benchmark competitive case, the firm will expand the hiring of employees until the marginal revenue product is
A. equal to the market wage rate.
B. greater than the market wage rate.
C. the square of the market wage rate.
D. less than the market wage rate.
Answer: A
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If stock exchanges did not exist,
a. the risk to the investor of buying stocks would be much greater. b. the economy's resources could be more efficiently allocated among firms. c. there would be no organized way for firms to issue stock. d. investment banks would no longer play a role in handling stocks.
Which of the following might be a byproduct of safety regulations that protect buyers from potentially harmful foreign products?
a. additional revenue from tariffs b. restricting foreign competition c. expanding consumer choices d. increasing international trade
Total expenditure equals total income
What will be an ideal response?
Which of the following is not a reason that capital deepening is an important source of economic growth?
(A) More investment funds are made available to businesses. (B) Investment in human capital causes workers to be more valuable to employers. (C) Enhanced training programs improve the productivity of workers. (D) More physical capital improves efficiency and productivity.