If a firm is using a resource hired in a perfectly competitive market, and if the price of the resource exceeds the marginal revenue product of the resource,
a. more of the resource should be used
b. less of the resource should be used
c. the firm should pay a lower price for the resource
d. the firm should pay a higher price for the resource
e. the firm is using the optimal amount of the resource
B
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If the central bank buys foreign assets,
A) the domestic monetary base will decline. B) domestic short-term interest rates will decline. C) the foreign-exchange value of the domestic currency will rise. D) its holdings of international reserves will rise.
If both total employment and total output in an economy grow by 2 percent each year, then the annual growth in labor productivity in the economy over a decade will be equal to _____
a. 0 percent b. 2 percent c. 10 percent d. 20 percent e. 2 percent times the size of the labor force
Which of the following is an example of a capital good?
A. A new speaker system sold to an automaker for installation in a car B. A metal-stamping machine used to produce cars sold to an automaker C. A new mobile phone sold to a teenager D. A new car sold to a family
Suppose a new Concordia University graduate will have an annual nominal income of $35,000 for the first year she works. If the annual inflation rate is 10 percent, what salary would she need in the second year to maintain the same real income?
a. $35,000 b. $40,000 c. 31,500 d. 38,500