The marginal product of the 14th worker is 8 and the firm sells its output for $4 per unit. If labor is the only variable cost, then the value of the 14th worker's marginal product is
A. $12.
B. $32.
C. $4.
D. $2.
Answer: B
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An increase in deficit spending tends to raise interest rates, thereby resulting in a multiplier effect that is higher than what would be associated with an equivalent increase in consumption spending
a. True b. False Indicate whether the statement is true or false
After new HUD guidelines were issued in 1999, Freddie Mac and Fannie Mae
a. extended fewer loans to borrowers making a down payment of 5 percent or less. b. extended more loans to borrowers making a down payment of 5 percent or less. c. extended new loans only to borrowers making a down payment of at least 20 percent. d. refused to extend new loans without full verification that the borrower had prime credit status.
If the minimum wage is set above the equilibrium wage, then
A) more people will work than at the equilibrium wage. B) the same number of people will work as at the equilibrium wage. C) fewer people will want to work than at the equilibrium wage. D) there will be fewer labor hours purchased by employers than at the equilibrium wage. E) none of the above
Refer to the above table. What is the absolute price elasticity of demand when price changes from $6.00 to $6.50?
A. 0.60 B. 1.00 C. 0.65 D. 1.60