If more and better technology is used for producing wheat in the United States than in a lesser-developed country, then the:
A. MRP of the U.S. workers will be higher than the MRP of the workers in the lesser-developed country.
B. MRP of the U.S. workers will be lower than the MRP of the workers in the lesser-developed country.
C. demand for the U.S. workers will be lower than the demand for the workers in the lesser developed country.
D. price of wheat will be higher in the United States than in the lesser-developed country.
Answer: A
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In the short-run macro model, which of the following increases when government spending increases?
a. The interest rate b. Investment spending c. Taxes d. Spending on consumer durables e. The money supply
Marginal cost
A. Is the change in total cost associated with a one-unit increase in production. B. Is the change in total output from hiring one more factor of production. C. Is the change in the total cost when hiring one more factor of production. D. Falls when there are diminishing returns.
Answer the following statement(s) true (T) or false (F)
There are predictions that computers may become as powerful as the human brain by 2030.
The long-run policy prescription that comes from the "natural-rate-of-unemployment" discussion is:
a. Governments and central banks should adjust monetary and fiscal policies to keep unemployment and inflation as low and predictable as possible. b. Governments and central banks should use monetary and fiscal policies to keep inflation as low and predictable as possible. c. Real wages should not be allowed to change in the short run. d. Fiscal and monetary policies are excellent ways to adjust the natural rate of unemployment. e. Governments and central banks should use monetary and fiscal policies to keep unemployment as low and predictable as possible.