Let L represent the number of workers hired by a firm, and let Q represent that firm's quantity of output. Assume two points on the firm's production function are (L = 12, Q = 122) and (L = 13, Q = 130). Then the marginal product of the 13th worker is
a. 8 units of output.
b. 10 units of output.
c. 122 units of output.
d. 132 units of output.
a
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Suppose the Economics Department has a graduation party for its students but as a final test they must show they have learned something about trade. The men are given food when they walk in and the women are given drink. Suppose they have very different preferences where food and drink provide utility. For men U = F?D? . For women U=min(F,D) The contract curve in the Edgeworth box using a
representative man and woman would be a. a right angle connecting the lower left corner with the upper right corner. b. a curve (not necessarily a line) connecting the lower left corner with the upper right corner. c. a line connecting the lower left corner with the upper right corner. d. a right angle connecting the upper left corner with the lower right corner.
Which of the following is a term referring to an unwritten agreement in the labor market that the employer will try to keep wages from falling when the economy is weak or the business is having trouble, and the employee will not expect huge salary increases when the economy or the business is strong?
a. efficiency wage theory b. relative wage coordination argument. c. implicit contract d. insider-outsider model
Some industrial psychologists suggest that, "pay is not a motivator". How do they support the argument and what are the limitations of that argument?
What will be an ideal response?
The simple quantity theory of money predicts that an increase in M of 5 percent will lead to
A) an increase in P of 5 percent. B) an increase in P of less than 5 percent. C) an increase in P of more than 5 percent. D) a decrease in P of 5 percent. E) a decrease in P of more than 5 percent.