If per capita GDP growth exceeds labor productivity growth, then:
a. human capital must be increasing
b. the labor–capital ratio must be decreasing.
c. employment must be growing faster than population.
d. population must be growing faster than employment.
e. physical capital must be increasing.
c
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Firms hire more labor as long as
A) the real wage rate is greater than the additional output the labor produces. B) extra labor will produce more output. C) the real wage rate is less than the additional output the labor produces. D) the nominal wage rate exceeds the real wage rate. E) the nominal wage rate is less than the real wage rate.
When set correctly, a Pigouvian tax is efficient because it is equivalent to a lump sum tax.
Answer the following statement true (T) or false (F)
Roughly what percentage of money income was earned by the lowest 20% of income earners in the U.S. in 2010?
A) 0.8% B) 3.8% C) 6.8% D) 9.8%
A firm that sought to "maximize market share" would choose to produce an output level for which marginal revenue was equal to
a. marginal cost b. average cost. c. price. d. zero.