Economists Cade Massey and Richard Thaler analyzed whether teams in the National Football League distributed salaries efficiently. Massey and Thaler found that
A) both rookie players and veteran players are paid less than the value of their marginal products because of the lack of competition among teams.
B) veteran players who sign as free agents are paid more relative to their marginal products than rookie players selected in the first round of the draft.
C) rookies are paid salaries greater than their marginal products; veteran players are paid salaries less than their marginal products.
D) the first few players selected in first round of the NFL draft are paid much higher salaries relative to their marginal products than players drafted later in the first round.
D
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If the tradeoff between the two goods is constant, the production possibilities curve is
A) a negatively-sloped straight line. B) a positively-sloped straight line. C) a negatively-sloped curve which is bowed inward. D) a negatively-sloped curve which is bowed outward.
What does marginal cost equal?
a. total output divided by the change in total cost b. total cost divided by quantity of output produced c. the change of total cost divided by the change of output d. average cost divided by output
Preservation of national security is one argument in favor of trade restrictions.
Answer the following statement true (T) or false (F)
If the MPC in the United States was high, it would increase the value of the multiplier.
Answer the following statement true (T) or false (F)