If a firm faces perfectly competitive product and factor markets and the marginal product of labor and capital are 4 and 9, respectively, while the wage rate is $2 and the rental rate on capital is $4, the firm should
A) use relatively more capital.
B) use relatively less capital.
C) increase all inputs proportionately.
D) decrease all inputs proportionately.
A
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Changes in tax laws in 1993
A) reduced Federal revenues by making the tax code more regressive. B) reduced Federal revenues by making the tax code more progressive. C) increased Federal revenues by making the tax code more regressive. D) increased Federal revenues by making the tax code more progressive.
If the price of oil increased by 15 percent when oil producers believed that other prices were rising 10 percent over the same period, what would happen to the quantity of real output supplied by the oil industry?
You consider yourself to be a rational consumer. The marginal utility/price ratio of coffee is 12 utils per dollar. If the price of a donut is $0.75, you should only buy the donut if it gives you at least
A) 16 utils of satisfaction. B) 9 utils of satisfaction. C) 12 utils of satisfaction. D) The answer cannot be determined with this information.
Which of the following factors does not affect the long-run supply and demand conditions of foreign currencies?
A) Relative inflation rates B) Relative productivity levels C) Tastes for domestic versus foreign goods D) All of the above affect the long-run supply and demand conditions of foreign currencies.