A worker's contribution to a firm's revenue is measured directly by the worker's
a. marginal product.
b. value of marginal product.
c. marginal product multiplied by the worker's wage.
d. value of marginal product multiplied by the output price.
b
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The diagram above depicts the demand for, and market price of, buckets of raw oysters in Orlando
a. What is the consumer surplus of the person who buys the 100th bucket of oysters? b. What is the consumer surplus of the person who buys the 200th bucket of oysters? c. What is the consumer surplus of the person who buys the 300th bucket of oysters? d. What is the total consumer surplus from all the oysters consumed in the market?
Suppose Russia's inflation rate is 200% over one year but the inflation rate in Switzerland is only 2%. According to relative PPP, what should happen over the year to the Swiss franc's exchange rate against the Russian ruble?
What will be an ideal response?
Adam Smith's invisible hand principle stresses
a. that benevolence is a powerful motivator that encourages individuals to engage in productive economic activity. b. the tendency of the competitive market process to direct self-interested individuals into activities that enhance the economic welfare of society. c. the potential of government regulation as a means of bringing the self interest of individuals into harmony with the economic welfare of society. d. the tendency of self-interested individuals to pursue activities that benefit themselves but harm the overall economic welfare of society.
When consumers and firms are driven by rational self-interest and they seek to maximize utility and profit respectively, then a parallel assumption would be that elected officials attempt to:
a. best serve the public interest. b. maximize hours worked. c. maximize their political support. d. fight for the oppressed and the disenfranchised, regardless of the political consequences.