Which of the following best describes the marginal cost of labor?
A. The cost paid by the consumer, through a higher price, when a firm must raise prices to cover the cost of hiring an additional employee
B. The additional cost to the firm of hiring one more unit of labor
C. The additional cost to the firm of the taxes, fringe benefits, and office space that one more worker will require
D. The additional cost to the firm of producing the additional product that will be sold because of hiring one more unit of labor
Answer: B
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In which of the following market models do demand and marginal revenue diverge?
A. Pure monopoly, oligopoly, and monopolistic competition. B. Pure monopoly, oligopoly, and pure competition. C. Pure monopoly only. D. Oligopoly only.
Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.
Figure 6.1Refer to Figure 6.1. Assume Tom is on budget constraint AC and the price of a hot dog is $5.00. Tom's monthly income is
A. $40. B. $100. C. $200. D. $400.
A nation's average annual real GDP growth rate is 3%. Based on the "rule of 72," the approximate number of years that it would take for this nation's real GDP to double is
A. 40 years. B. 175 years. C. 17.5 years. D. 24 years.
Suppose that the effective return to a U.S. investor from buying a U.K. bond is 5.55%. Forward and spot exchange rates ($/£) are 2.10 and 2.00 respectively. The interest rate on the U.K. bond is most likely equal to:
A) 5.45% B) 5.500% C) 5.650% D) 5.60%