Total wages paid to labor are maximized when workers are hired up to the point where the
A. Marginal wage equals zero.
B. Market wage equals the marginal factor cost.
C. Demand for labor equals the marginal factor cost.
D. Marginal wage is equal to the market wage.
Answer: A
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Martha quits a minimum-wage part-time job for a salaried full-time job. The BLS will count Martha as
A) originally unemployed but now employed. B) originally employed and continuing to be employed. C) originally a discouraged worker but now happily employed. D) any of the above.
Suppose there is a simultaneous central bank purchase of bonds and increase in taxes. We know with certainty that this combination of policies must cause
A) an increase in the interest rate (i). B) a reduction in i. C) an increase in output (Y). D) a reduction in Y.
What is the goal of monetary policy?
What will be an ideal response?
A trade deficit means a net:
A. Inflow of payments for goods and services B. Outflow of goods and services C. Inflow of goods and services D. Excess of exports over imports