The optimal hiring rule is to employ labor up to the point where:
A. wage = MFC.
B. wage = MP.
C. wage = MR
D. wage = MRP
Answer: D
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The GDP price index equals ________.
A. gross private domestic investment less the consumption of fixed capital B. nominal GDP divided by real GDP C. gross national product less net foreign factor income earned in the United States D. real GDP divided by nominal GDP
Lengthening of the average unemployment spell suggests that ________ unemployment is growing in importance
A) frictional B) structural C) cyclical D) turnover
Assuming a market rate of interest equal to 7 percent and anticipated inflation is 2 percent, what is the real (adjusted for inflation) present value of $200 to be received one year from today?
A) $190 B) $214 C) $187 D) $210
Refer to the accompanying figure. The total utility of consuming 4 pizzas a week is:
A. 22.5 B. 90 C. 75 D. 15