If the marginal product of labor is always positive, the total revenue will grow with each additional worker. Firms do not continuously hire new workers because:
A. there isn't enough room in the factory.
B. there isn't an infinite number of workers.
C. wages would have to increase.
D. they stop when MRP = wage
Answer: D
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The deadweight loss from a tax is called the
A) marginal benefit of the tax. B) marginal cost of the tax. C) excess burden of the tax. D) net gain from taxation. E) net loss from taxation.
Which of the following is a valid reason for protecting an industry?
A) The industry is unable to compete with low-wage foreign competitors. B) Protection penalizes lax environmental standards. C) Protection keeps richer nations from exploiting the workers of poorer countries. D) None of the above reasons is a valid reason for protection.
Define real shocks, define nominal shocks, and give an example of each
What will be an ideal response?
The creation of a separate legal being implies the business
a. has an existence independent of its owners b. is partially owned by the government c. must abide by federal law d. will be regulated by the government e. does not have to abide by state law