Because workers in the U.S. economy receive most of the total income earned, which of the following factors of production is considered to be the most important?
a. profit
b. wages
c. interest
d. labor
d
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Let L represent the number of workers hired by a firm, and let Q represent that firm's quantity of output. Assume two points on the firm's production function are (L=6,Q=147) and (L=7,Q=184). The marginal product of the seventh worker is
a. 25 units of output. b. 27 units of output. c. 37 units of output. d. 184 units of output.
According to the neoclassical theory of distribution, the wages paid to John Deere tractor assembly line workers are higher than those paid to fast food workers because assembly line workers
a. have college degrees, on average, whereas fast food workers usually do not. b. produce a product of greater market value than do fast food workers. c. work in a less stressful environment than do fast food workers. d. are less likely to belong to a labor union than are fast food workers.
Imagine that there is a group of workers, group B, which has an average productivity of $9 per hour. Suppose workers from group A have an average productivity of $15 per hour and that employers have a productivity test that is 100% accurate 1/3 of the time, but has no value 2/3 of the time. If a worker from group B took the same productivity test that was given to workers in group A, what is the best estimate of the VMP for this worker if his test score is $21 per hour?
A. $21 B. $13 C. $17 D. $18
Assume there is a decrease in government purchases and exports. Currently there is a recessionary gap, which implies that
A. Desired spending is greater than output. B. Inventories are accumulating. C. Investment is greater than saving. D. Inventories are being depleted.