Using the marginal product theory of wages, a worker's "real" wage is:
a. twice the amount of the "money" wage.
b. what the "money" wage will purchase in terms of products.
c. what she earns after taxes.
d. what she would earn if her employer paid her fairly.
Ans: b. what the "money" wage will purchase in terms of products.
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Refer to the above figure. Excess quantity demanded will exist when
A) the price is between $0 and $6. B) the price equals $6. C) the price equals $10. D) quantity demanded equals 3.
In this market, an increase in the parameter c would: a. increase both price and quantity
b. increase price and decrease quantity. c. decrease both price and quantity. d. increase quantity and decrease price.
Suppose the economy's production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A = 1, then Y = 246. If K rises by 10%, and A and N are unchanged, by how much does Y increase?
A. 3% B. 6% C. 30% D. 10%
If for any given inflation rate, the federal government lowered taxes, ________
A) it would have a similar qualitative result on output as an increase in government purchases B) it would raise disposable income leading to higher consumption spending C) the aggregate demand curve would shift to the right D) all of the above E) none of the above