For maximum profit, a firm hires labor up to the point at which the wage equals (i) the value of the marginal product of labor. (ii) the marginal cost of an additional unit of output. (iii) output price multiplied by the marginal product of labor
a. (i) and (ii) only
b. (i) and (iii) only
c. (ii) and (iii) only
d. (i), (ii), and (iii)
b
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Suppose Honda purchases a car factory in the United States. This purchase is entered into which of the balance of payments accounts?
A) business purchases account B) current account C) capital and financial account D) trade account E) official settlements account
What is the most common measure of a firm's capital stock, and why is it not the most important to focus on?
What will be an ideal response?
Look at the following data: GDP = $3,590 billion; consumption = $1,820 billion; exports = $450 billion; investment = $1,250 billion; government purchases = $900 billion. Imports is equal to __________ billion.
A. $830 B. $1,460 C. -$830 D. $1,240 E. none of the above
Government can correct for negative externalities by
A) decreasing taxes. B) increasing taxes or regulation. C) allowing the market system to correct the problem. D) decreasing the costs to those responsible for the externality.