The marginal revenue product of labor is
A. the additional revenue a firm earns by employing one additional unit of labor.
B. the additional revenue the firm makes by selling one unit of labor.
C. the marginal product of capital times the price of labor.
D. the additional profit a firm earns by employing one additional unit of labor.
Answer: A
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If your bank receives a demand deposit of $20,000 . and the banking system makes loans totaling $180,000 . which is the maximum possible, then the legal reserve requirement must be
a. 0.10 b. 0.20 c. 0.25 d. 0.40 e. 0.50
Suppose that the current money market equilibrium features an interest rate of 5 percent and a quantity of $2 trillion. If the Fed raises the discount rate, which of the following is most likely to be the new money market equilibrium?
A. An interest rate of 6 percent and a quantity of $1.5 trillion. B. An interest rate of 5 percent and a quantity of $2 trillion. C. An interest rate of 4 percent and a quantity of $2.5 trillion. D. An interest rate of 3 percent and a quantity of $3 trillion.
In input, or factor, markets
A. households demand goods. B. firms supply goods. C. households supply resources. D. consumers purchase products.
Optimal decisions take into account
A. the resources available. B. the alternatives that were not available to choose. C. the gratification produced by an outcome. D. the effect on the distribution of income. E. the outcomes that are not feasible.