"The decision to employ an additional unit of labor depends on whether the value of marginal product is greater than or smaller than the wage rate." Is the previous statement correct or incorrect?
What will be an ideal response?
The statement is correct. If the value of marginal product exceeds the wage rate, the worker is hired; if the value of marginal product is less than the wage rate, the worker is not hired.
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Compare and contrast the financial crises in Mexico in 1994 and in Asia in 1997
What will be an ideal response?
The VP in charge of product launches hypothesizes that a particular product would be profitable, then launching an unprofitable product is a
a. Type I error b. Type II error c. Type III error d. Type IV error
Government-produced goods are added to GDP at
a. their market value. b. the value they have to their users. c. the value of the inputs used to produce them. d. the value Congress places on them.
With time, which one of the following strategies would most likely result in an outward shift in the production possibilities curve of an economy?
a. passage of legislation reducing the workweek to 30 hours b. instituting a tax policy encouraging consumption at the expense of investment c. instituting a tax policy encouraging investment at the expense of consumption d. an increase in the marginal income tax rate, which would reduce the work effort of individuals