Firms hire labor at the point where the
A. real wage rate equals the marginal revenue product of capital.
B. real wage rate equals the marginal revenue product of labor.
C. nominal wage rate equals the marginal revenue product of labor.
D. nominal wage rate equals the marginal product of labor.
Answer: C
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Some economists argue that the short-run Phillips curve is not vertical, and that monetary policy can be effective in the short run. Which one of the following is not one of the reasons for this skepticism?
A) Wages and prices may not adjust rapidly enough to keep the short-run Phillips curve vertical. B) Individuals may not be able to use information of Fed Policy to make a reliable forecast of inflation. C) Empirical evidence shows workers and firms have rational expectations. D) Contracts with workers and suppliers may hinder firms' abilities to adjust to price changes.
Which of the following is an example of a private good?
a. Cable television b. Health care c. The judiciary d. Cars
The government’s profit from printing currency is called
a) seignorage b) arbitrage c) the rate of exploitation d) the inflation tax e) the velocity of money
When a country internationalizes its debt, it:
A. increases current consumption but reduces future consumption. B. increases both current and future consumption. C. reduces both current and future consumption. D. reduces current consumption but increases future consumption.