Suppose the MRP of a firm's 12 th worker is $22 and the worker's marginal wage cost is $16. We can say with certainty that the firm:
A. is hiring labor in a competitive labor market at a wage rate of $16.
B. is hiring labor in a monopsonistic labor market.
C. will find it profitable to hire fewer workers.
D. will find it profitable to hire more workers.
Answer: D
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The table above shows the exchange rates between various currencies and the U.S. dollar. Between 2015 and 2016, the Japanese yen ________ against the U.S dollar and the Euro ________ against the U.S. dollar
A) appreciated; appreciated B) depreciated; appreciated C) depreciated; depreciated D) appreciated; depreciated
The following is an example of the moral-hazard problem: Homebuyers do not properly evaluate the risks involved in buying a home, because they are assuming the government will bail them out of a bad mortgage as it has done before.
Answer the following statement true (T) or false (F)
Abstraction can be thought of as
a. ignoring reality in order to build theory. b. omitting unimportant details in order to understand complex phenomena. c. creating absurdity in order to explain simplicity. d. assuming complexity when simplicity will do. e. stylizing reality rather than analyzing cause and effect.
Crime in the U.S. is committed disproportionately by
A. minorities. B. whites. C. Asian-Americans. D. legal immigrants.