The profit-maximizing number of workers for a monopsony to employ is derived at the point where the marginal revenue product of labor is equal to the marginal factor cost of labor
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following would result in GDP for an economy equal to $10 trillion?
A) C = $7 trillion I = $2 trillion G = $4 trillion NX = $3 trillion B) C = $6 trillion I = $2 trillion G = $1.5 trillion NX = -$2 trillion C) C = $4 trillion I = $3 trillion G = $2 trillion NX = -$1 trillion D) C = $5 trillion I = $5 trillion G = $2 trillion NX = -$2 trillion
A crucial difference between the impact of an import quota compared to a tariff is that:
a. import quotas generate revenue to the domestic government, but tariffs do not. b. import quotas generate no revenue to the domestic government, but tariffs do. c. tariffs increase the prices paid by domestic consumers, but quotas do not d. both (a) and (c)
If net taxes are included in the model, the equation that shows consumption at each level of income is: C = a + b(Y - T) or C = a + bY - bT
a. True b. False
An example of a variable cost to the firm is the
a. monthly rent it pays based on a multiple-year lease b. cost of shipping the goods it produces c. property taxes it pays d. interest payments on a bank loan e. entrepreneur's opportunity cost