Firm managers should use inputs at levels where the:
A. Value marginal product of labor equals wage.
B. Marginal benefit equals marginal cost and value marginal product of labor equals wage.
C. Marginal benefit equals marginal cost.
D. Price equals marginal product.
Answer: B
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Of the three primary tax sources of revenue for the U.S. federal government, which of the following has displayed no long-term trend as a percentage of GDP since 1962?
A) corporate income taxes B) social insurance taxes C) sales and excise taxes D) individual income taxes
The primary purpose of economics is to understand how people make
A) money. B) goods and services. C) choices. D) a comfortable living.
If the quality of an input is easily determined at the time of purchase, then it is likely to
a. be the cause of high transaction costs of using markets b. encourage vertical integration of a firm c. encourage supplier firms to produce low-quality inputs d. be produced internally by the firm e. be purchased in the market
What makes the macroeconomic performance of the 1993 to 1998 period so unusual is the
a. simultaneous occurrence of unemployment and inflation increases. b. simultaneous occurrence of real GDP decreases and inflation rate increases. c. occurrence of real GDP decreases while the unemployment rate increases. d. simultaneous occurrence of reduced unemployment rates and falling inflation rates.