Imagine that there is a group of workers, group B, which has an average productivity of $9 per hour. Suppose workers from group A have an average productivity of $15 per hour and that employers have a productivity test that is 100% accurate 1/3 of the time, but has no value 2/3 of the time. If a worker from group B took the same productivity test that was given to workers in group A, what is the best estimate of the VMP for this worker if his test score is $21 per hour?
A. $21
B. $13
C. $17
D. $18
Answer: B
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The above table has information about the hypothetical economy of Robotica. Based on the data, the size of M2 is
A) $2,600 billion. B) $2,610 billion. C) $610 billion. D) $600 billion. E) $1,710 billion.
Banks have historically used the discount window:
A. sparingly, until the financial crisis of 2008. B. often, until the financial crisis of 2008. C. sparingly during recessions, and often during booms. D. often during recessions, and sparingly during booms.
In the U.S., taxes on capital gains are computed using
a. nominal gains. This is one way by which higher inflation discourages saving. b. nominal gains. This is one way by which higher inflation encourages saving. c. real gains. This is one way by which higher inflation discourages saving. d. real gains. This is one way by which higher inflation encourages saving.
Due to extremely large fixed costs, an electricity generating plant probably experiences which of the following returns to size?
A. diseconomies of scale B. economies of scale C. diminishing marginal product D. constant returns to scale