A firm can hire six workers at a wage rate of $8 per hour but must pay $9 per hour to all of its employees to attract a seventh worker. The marginal wage cost of the seventh worker is:
A. $9.
B. $10.
C. $15.
D. $21.
Answer: C
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If labor productivity growth slows down in a country, this will
A) slow down the increase in real GDP per capita. B) accelerate the increase in nominal GDP. C) slow down the increase in nominal GDP. D) accelerate the increase in real GDP per capita.
The Sherman Antitrust Act of 1890 was not well understood because
(a) skilled lawyers were not involved in its creation. (b) judges were mainly political hacks and therefore were unable to follow the logic of the Act. (c) vested interests had been allowed too much influence in drafting the legislation. (d) the purpose of the legislation was not sufficiently clear when it was drafted.
If the executives of the U.S. silicon-chip industry lobby Congress for protection from imports on the grounds that foreign producers are selling silicon chips in the United States below production costs, they are using the:
A) environmental standards argument. B) retaliation against dumping argument. C) cheap foreign labor argument. D) national security argument.
(Consider This) The collective action problem refers to:
A. logrolling behavior that results in inefficient policies. B. the tendency for legislatures to enact policies that are economically harmful. C. the lack of political power of small groups of people. D. difficulty in organizing and motivating large groups to achieve desired outcomes.