If there is imperfect competition in the product market, the marginal revenue product of a factor will be greater than the value of its marginal product
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following best defines economics?
A) Economics teaches how to limit our wants. B) Economics studies how to choose the best alternative when coping with scarcity. C) Economics helps you earn as much money as possible. D) Economics analyzes all aspects of human behavior in general. E) Economics is concerned with prices and quantities of goods and services, both at the individual level and at the industry level.
In the real business cycle model, a persistent increase in total factor productivity
A) increases the real wage and increases the price level. B) increases the real wage and decreases the price level. C) decreases the real wage and increases the price level. D) decreases the real wage and decreases the price level.
The substitution effect of a change in the real interest rate is an example of
A) an intratemporal substitution effect. B) an intertemporal substitution effect. C) an atemporal substitution effect. D) a temporary substitution effect.
Political factors influence international trade because
a. foreign trade always involves at least two governments. b. foreign governments are much less concerned with the welfare of citizens in other countries. c. foreign governments often establish impediments to free international trade. d. All of the above are correct.