Where should a producer stop devoting more of his spending on labor if initially the MRP of the additional dollar spent on labor is higher than the MRP of the additional unit spent on tools?
a. MRP/$ of additional labor falls below MRP/$ of additional tools.
b. MRP/$ of additional capital increases above MRP/$ of additional tools.
c. MRP/$ of additional labor becomes equal to MRP/$ of additional tools.
d. MRP/$ of the additional labor falls to zero.
c
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Collusion results when a group of firms
i. act separately to limit output, lower prices, and decrease economic profits. ii. act together to limit output, raise prices, and increase economic profits. iii. in the United States legally fix prices. A) i only B) ii only C) iii only D) i and iii E) ii and iii
The European Commission believes that in 2016 exports of goods and services from Spain will be 22 times larger than in 2013. Irish exports are expected to have grown by 15 percent over the same period. If imports remain constant
A) the current account balance in both countries will become more positive. B) the current account balance in both countries will become more negative. C) there will be no change in the current account balance of both countries. D) in both countries the capital and financial account balance will become more positive.
Which of the following statements is a defining feature of a corporation?
a. The owners of a corporation face unlimited liability on debts. b. A corporation owns and operates units only in foreign countries. c. A corporation is created by a verbal agreement. d. A corporation that is based on a verbal agreement is also recognized by State law. e. A corporation has a legal identity that is separate from that of its owners.
Which of the following would cause a rightward shift in the AD curve?
A) an increase in the price level B) a decrease in the price level C) an increase in imports D) a decrease in the quantity of money available in the economy E) an increase in government purchases of goods and services