A firm that wishes to maximize profits will continue to hire labor until the
A) real wage = MPL.
B) nominal wage = MPL.
C) nominal wage = the real wage.
D) nominal wage = the price level.
A
You might also like to view...
In settings where the policy space is single dimensional, non-single peaked preferences by some implies there is no Condorcet winner.
Answer the following statement true (T) or false (F)
It is often stated that the Japanese firms develop and adapt new technology to manufacturing process twice as fast as U.S. firms. If this is true, ceteris paribus, we would conclude that the
A) depreciation rate of capital does not change, but the user cost of capital increases. B) depreciation rate of capital increases, but the user cost of capital decreases. C) depreciation rate of capital increases, and the user cost of capital increases. D) U.S. interest rate is too high, preventing American manufacturers from adopting new technologies.
Provide two justifications for not taxing unrealized capital gains
What will be an ideal response?
Under a negative income tax program,
a. the government guarantees a minimum level of family income. b. a family must pay income taxes on its welfare check. c. a family receives a stated amount of money from the government plus its members can keep all income earned through work. d. the government reduces the welfare payment by any income earned through work. e. a family's income is lower if its members work.