Suppose the output of a firm hiring workers in a competitive labor market increases by three units when an additional worker is hired. This firm will hire more laborers if the market price of its product is $4 and the wage rate is $9 . [Hint: Marginal revenue product of a resource is equal to the product of marginal product of the resource and the marginal revenue of the firm.]
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to the above figure. What is the socially optimal point of production?
A) P1 and Q1. B) P4 and Q1. C) P1 and Q4. D) P3 and Q2.
Of the following resources used to supply sidewalk food in New York City, which is the most expensive?
a. capital b. land c. entrepreneurial ability d. labor e. food
Which of the following bank assets declined in value in the mid-2000s?
A) subprime loans B) mortgage-backed securities C) collateralized debt obligations D) nontraditional loans E) all of the above
Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.